Pure-Risk Cover

Pure-risk life insurance policies can be classified into three main categories, based on the type of event they cover:

• Survival Benefits, providing a payout - either a lump sum or an annuity - if the insured person is still alive on a specified date.
• Death Benefits, offering financial protection in the event of the insured person’s death. The insurer agrees to pay a lump sum or an annuity to the beneficiary if the death occurs within a specified term, or, in some cases, regardless of when the death occurs (whole life coverage).
• Mixed Life Insurance, combining both survival and death benefits. For example, the insurer may guarantee a payout on a set date if the insured is still alive, or earlier, if the insured passes away before that date.