Monday, February 12, 2007

Terminology - Participating & Non-Participating Policies


Participating Policies

Also known as With-Profit policies.

Refers to life insurance products that share in the profits or surplus of the insurance fund. Policy owners will receive bonuses from the insurer resulting in a death benefit that is greater than the basic sum assured as well as a cash value to the policy.

Non-Participating Policies

Also known as Without-Profit policies.

Refers to life insurance products that do not share in the profits of the insurer. Policy owners will not be entitled to any bonus payment from the insurer.

2 comments:

Raizu said...

As affordable term life insurance policies are for a specific time period it is also cheaper when compared to the full life insurance policy. You can purchase a policy which is offered between 10 year term life insurance plan to 30 years’ plan.

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