Endowment Whole Life Insurance

Endowment is type of permanent life insurance

in which the premium paying period is shorter A life Insurance plan with an
than whole life insurance and the insurance unspecified period, under which the
Definition
amount is paid out within a certain period (10- death benefits are paid on death
20 yrs) or when the insured reaches a certain whenever it may occur.
age.
Death benefits paid at the time of death or a
Payment Death benefits paid on death only.
lump sum paid on maturity.
Premium Cost or premiums is comparatively expensive. Premiums are relatively low.
Limited period to pay premium, which builds
Level premiums distributed
cash value faster. Also, it is possible get a lump
Advantages throughout life of insured and more
sum of cash in case of illness or at the time of
affordable.
maturity.

Insurance Policy Assurance Policy

protection against an event
that might happen
In life insurance,
the dependants receive the
policy if all premiums paid on
time and the person dies
within the duration of policy.
Protection against an event
that is definite
In life assurance, a person can
choose to cash out his policy
anytime he so desires.

Why preference shares are considered hybrid security?

A *hybrid security* (also referred to as "hybrids"), is a security that combines elements of two securities,
such as debt and equity. Other examples of hybrid security include convertible bonds and income
securities.
In the case of *preference shares*, although they are legally shares, they also provide a fixed return like
bonds do.

Preference shares form an intermediate class of security between equities and debt. If the issuer is
liquidated, they carry the right to receive interest and/or a return of capital in priority to ordinary
shareholders. However, from a legal perspective, they are capital stock and therefore may entitle holders
to some degree of control depending on whether they contain voting rights.

Difference between Cheque and Demand Draft: