Question 2 John is 30 years old. He has been buying life insurance policies from his friend, who is an insurance agent. Over the past 5 years, he has purchased 3 insurance policies as follows: Type of policies Sum Assured Annual Premium Whole life $150,000 $700 Endowment policies $50,000 $ 850 Term (till age 60) $200,000 $ 530 John was perplexed. He has no clue what these policies are and does not understand how these policies can help him in his financial planning. He has approached you for help. (a) (b) John was introduced to investment-linked policies (ILP) by his insurance agent. He roughly knows that it has to do with investments. Since he currently does not have an ILP, he feels that this could be a good addition to his current policies. If John now wishes to plan for his retirement, show the differences between an IPL and an endowment policy and determine which instrument is appropriate for him. (20 marks) John intends to pass the death proceeds to his parents should he die. He has read the policy details but could not make sense of the clauses and provisions. Show John two standard options available to ensure that the death proceeds are paid securely to John's parents when he dies. (10 marks)