Under an ordinary savings plan, only the accumulated amount is paid. A person whose life is covered under a life insurance policy is known as the life insured. A claim is a written request by the insured for the insurance company to cover an incurred loss, usually submitted on the company s standard form. A with-profit plan is one entitled to bonus, which is paid at the time of claim, death or maturity. A without-profit plan does not participate in bonuses and the contracted amount is paid without any additions.
Riders are the additional benefits that one can add on to the policy.
Riders can be opted for at time of taking the basic policy at a marginally incremental cost. No bonuses are paid under the rider. Normally, after paying premium for three years, you are eligible to take a loan against your policy. All non-investment linked whole life and endowment plans have a loan option. Loans can be taken up to a certain amount of the surrender value of the policy without the need of a guarantor or security.