Types of insurance - SS2 Commerce Past Questions and Answers - page 1

Whole life insurance

The portion of premiums that builds up as a savings component

Endowment insurance

At a specific maturity date

Whole life insurance

Whole life insurance provides coverage for the entire lifetime of the insured person and accumulates a cash value, while endowment insurance provides a guaranteed sum of money either upon the insured person's death or at a specific maturity date.

The two components of whole life insurance are the death benefit, which is paid out upon the insured person's death, and the cash value component, which accumulates over time as a savings element.