1) Death Benefit table
How much is paid out in the event of death.
If your policy comes with additional coverage for Total Permanent disability and Critical Illness, there might be separate tables for them. Otherwise please check the "Product Summary" page for more info.
2) Distribution Cost table
This table shows you how much of your premiums goes into paying your agent's commissions
and the insurance company/broker.
3) Surrender Value table (only for policies with cash values)
The amount of cash you can get back if you terminate the policy.
There will usually be a column showing the non-guaranteed cash values.
These values may be higher or lower depending on what your policy is invested into.
For traditional whole life policies, this is based on the performance of the insurer's Participating fund.
For Investment-linked policies, this is based on the performance of your selected fund(s).
4) Effect of deductions table (only for policies with cash values)
The effect of deductions is the opportunity cost of putting your premiums in the policy instead of investing them somewhere else.
5) The Product Summary
It basically tells you what is covered, whether your premiums are locked-in or subject to changes in future. If you policy comes with cash values, it will describe the investment details, and highlight what is guaranteed and what is not guaranteed.
6) The Policy Conditions
This contains the specific definitions to what constitutes to a pay out and what doesn't. For example, if your policy covers for death, there might be fine print that death due to suicide is not covered.
If you cannot find the Policy Conditions in the Benefit Illustration, you should request for a copy of this document from your insurer at no cost.
7) 14 day free look period
Most policies come with a 14 day free look period. This means the insurance company will allow you to cancel your policy within 14 days after you have purchased and received your policy document. You will receive a full refund of premiums unless otherwise stated in the Benefit Illustration. This is good for you because there is no way you can finish digesting all the above within a few hours with your agent.
