Pure-Risk Cover
According to the type of event covered by the contract, these policies can be divided into three main categories: life insurance with survival benefits, with death benefits and mixed life insurance policies providing both survival and death benefits.
For life insurance with survival benefits, the insurance company may undertake to pay a fixed annuity for the full life of the insured party, it may provide a temporary annuity up to a previously agreed date or it may provide an annuity (or a lump sum) to the beneficiary on a set date, if the insured party is still alive on that date.
There are basically two types of death insurance policy: the company agrees to pay a lump sum, or an annuity to the beneficiary, in the event of the death of the insured happening either within a given term or with no time limits.
Finally, mixed life insurance policies are essentially a combination of the first two: for example, the company can guarantee the payment of a lump sum or an annuity to the beneficiary on a set date if the insured party is still alive, or before that date if the insured party dies.
