ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It is also referred to as “pure life insurance” since, unlike whole life insurance, it has no cash value component and is only meant to pay out to your dependents if you die during the term of the policy.

Detailed explanation-2: -In pure-term insurance, the insured will not get any cash benefits or returns after the policy term if the insured survives. All the premiums paid will be forfeited by the insurance company in case of the survival of the insured.

Detailed explanation-3: -Term life insurance It is sometimes called “pure life insurance” because, unlike whole life insurance, there’s no cash value to the policy. It’s designed solely to give your beneficiaries a payout if you die during the term. Most individual term policies have level premiums, so you pay the same amount every month.

Detailed explanation-4: -Endowment insurance provides for the payment of the face amount to your beneficiary if death occurs within a specific period of time such as twenty years, or, if at the end of the specific period you are still alive, for the payment of the face amount to you.

Detailed explanation-5: -It’s also known as cash value insurance because the policy can also be used as a type of savings or investment vehicle.