Term, whole of life, endowment, unit-linked: which is which, and which one is “money thrown away”?

Term: pays if you die within a set period. Whole of life: pays whenever you die, as long as it is in force. Endowment: pays on death or at maturity, whichever comes first. Unit-linked: cover together with units in investment funds whose value goes up and down.

No more than home insurance on a house that did not burn. You paid so that support was there while your family needed it. A policy that gives money back costs more, because part of the premium is saved. The fair comparison is the same cover, the same term, and what happens to the difference.

It pays either on death within the term or at maturity if you are alive. Term pays only on death. That is why an endowment has a higher premium for the same sum insured. Look at what part of the maturity value is guaranteed.

It depends on the design. Some whole-of-life policies build a surrender value; others are pure cover with no value if you stop. The table of surrender values is part of the information you must receive before you sign. Ask for it year by year.

Ask in writing for the cost of cover, the charges and the amount invested or saved. For investment policies, the key information document (KID) and the cost disclosure show the total cost. If something is unclear, ask for an explanation before you sign.

Separately, the cost of cover is clear and you change one without the other, as long as you really invest the difference. Together, you have one payment and built-in discipline, but the charges and exit terms need attention. There is no single right answer for everyone. What suits you is judged by an advisor with a written suitability assessment.

It is the amount paid if you are alive on the maturity date. It may have a guaranteed part plus bonuses or investment value that are not guaranteed. The offer shows examples at three rates, which are a model and not a promise. A few months before maturity, ask what payment options you have.

The cover ends and nothing is paid, unless the policy says otherwise. If you still need cover, a new application is judged on your age and health at that time. That is why it is worth thinking about the need well before the end date.

Only if the policy has a renewal option; we did not find a rule in Cyprus that gives it to everyone. Where it exists, the premium is usually calculated on your new age, sometimes without new medical evidence. Read the renewal clause before you sign.

Ask when others will stop depending on your income. For many people it is when the children finish studying or when the home is paid off. Some split the cover into two policies with different terms. The “How much cover do I need” tool helps you think it through.

In a with-profits policy, the insurer invests in a shared fund and adds bonuses, often “smoothing” good and bad years. In unit-linked, your value follows the unit price directly. The law requires an annual statement on profit-sharing. See our article on guarantees and bonuses.

Not always. Many of today’s savings policies are unit-linked, where the policyholder carries more of the investment risk, while older policies more often had a guaranteed rate or bonuses. Do not assume the same guarantees apply. Read the KID and what it says is guaranteed.

Term is protection only. Endowment and unit-linked mix protection and saving. Whole of life can be mainly protection or can also build a value, depending on the design. The name on the leaflet is not enough; look at what it pays and when.

Yes, a term policy can be short, with a level or decreasing amount. If it is taken out to secure a loan, the 30-day right to withdraw may not apply. For a housing loan, the bank must accept equivalent cover from another insurer.

Usually “накопительное” means a savings policy with a guaranteed part or bonuses, and “инвестиционное” means an investment-linked policy such as unit-linked. But the words are not legal terms. Ask for the KID and ask who carries the investment risk.

Often yes, with riders for a spouse or children. Check what happens to them if the main policy stops or changes, because they usually end with it. Two separate policies give more independence, for example in a separation.

It is term cover that, on death, pays a regular amount until the end of the term, instead of one lump sum. It helps when the family needs a “salary” rather than capital. Not every insurer offers it; ask whether it exists and how it is paid.

Increasing cover goes up in a pre-set way each year. Indexation usually offers an increase in cover and premium, which you can often decline. In both, the premium rises. Read how the increase is calculated and what happens if you decline it.

It is cover for short periods, for example a year, that renews without new medical evidence where the clause provides for it. The catch is that the premium rises with age at each renewal, and renewal usually stops at a certain age. Ask in writing how long it renews for and how the price changes.