MANAGEMENT

Detailed explanation-1: -In whole life policy, there is no period of maturity as it is payable on death, but endowment policy has a maturity period. Rate of premium is low for whole life policy as compared to endowment policy. Premium is payable throughout the life for whole life policy while only for a specified period in endowment policy.

Detailed explanation-2: -The difference is that endowments have a shorter coverage period and mature sooner, usually in 10 to 20 years. Whole life policies are designed to last for the insured’s whole life, so they mature when the insured policyholder reaches the age of 95 or 100. It is less likely for whole life policies to mature.

Detailed explanation-3: -Anticipated endowment policies are similar to regular endowment policies except that a part of the sum assured is paid at pre-specified intervals during the term of the policy. The balance of the sum assured together with the accrued bonuses (if applicable) is paid at maturity.

Detailed explanation-4: -The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is: The shorter the payment period, the higher the premium.

Detailed explanation-5: -Most whole life policies endow at age 100. When a policyholder outlives the policy, the insurance company may pay the full cash value to the policyholder (which in this case equals the coverage amount) and close the policy. Others grant an extension to the policyholder who continues paying premiums until they pass.