- Incremental: Benefits in case of death increase as the account value grows. Beneficiaries will receive the basic insured amount plus the accumulated account value.
- Capped: Benefits in case of death remains constant throughout the life of the policy.
When benefits in case of death come from incremental policies, they are directly related to an investment. On the other hand in the case of a capped policy, benefits are always the same. The account value always varies based on the performance of assets in capital markets. Thus, savings are subject to return on investment.