Life Insurance Product Characteristics

Life insurance products can be grouped according to the period, which is the traditional life insurance products and life insurance products or more modern we are familiar with Link Unit. By knowing the difference between these two products may help you to know more about life insurance.
The characteristics of traditional life insurance products are:
Large premiums and cash coverage is fixed (constant) since the inception of insurance until the expiration of the insurance.
  Predetermined premium payment schedule, such as every year, six months, three months or monthly.
Since the contract began cash value policy can already be known.
The composition of costs, mortality tables and interest rates are not specified and are not known by the prospective policyholder.
Large interest rate enjoyed by the policyholder constant over the insurance contract.
  As for the modern life insurance products have the following characteristics:
The composition of separately specified premium between pure insurance premiums, costs and interest rates. All the details are known to the prospective policyholder.
Premium payment period and the amount of the sum insured is subject to change, and do not have a fixed schedule, because modern life insurance product allows the addition of any premium.
This product requires the administration far more complicated than traditional life insurance products, because these products have a premium section for substantial investment and should be managed professionally.
Prospective policyholder should determine where the funds (premiums) are invested, such as stocks, bonds, money market deposits and so on.
Cash value of the policy is determined by the performance of the investment committee of a life insurance company that manages, so that policyholders do not know exactly how much cash he would receive if canceled (lapse).