What types of insurance policies are there?
Whole of life policies usually have fixed premiums payable each year and provide death cover for as long as you pay the premiums. There is usually no time or age limit. There may be a cash (or surrender) value if the policy is stopped. Term insurance policies provide death cover only for a nominated number of years, or until a certain age. No payment is made if you live past the agreed time. There is no surrender value if the policy stops. Endowment policies provide death cover for a certain number of years and pay a sum of money at the end of that time. They also have a surrender value if stopped early.
