Life Insurance can be broadly classified into 2 types based on the risks to be covered. The pure risks to life are:
- the risk of living too long
- the risk of dying too early
Insurance products are a mix and match of how they cover the 2 above mentioned risks.
'Pure Endowment' covers the risk for living too long and 'Term Cover' is for insuring against the risk of dying to early.
Other Insurance products like 'Endowment Policies', 'Money Back Policies', etc are a hybrid of the 2 base products and cover both risks.
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