Insurance Awareness - Life Insurance - LIC
What distinguishes an endowment insurance policy from a money-back policy?
What distinguishes an endowment insurance policy from a money-back policy?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the difference between endowment and money-back policies
Endowment policies provide a lump sum either on maturity or death, while money-back policies pay periodic survival benefits during the policy term along with death benefit.Final Answer:
Endowment policies pay a lump sum on maturity or death, money-back policies pay periodic survival benefits → Option BQuick Check:
Endowment policies pay a lump sum on maturity or death, money-back policies pay periodic survival benefits correctly distinguishes the payment structure of the two policy types.
Quick Trick: Remember: Money-back = periodic survival benefits; Endowment = lump sum at end or death.
Common Mistakes:
MISTAKES- Confusing periodic payments with maturity benefits or ignoring survival benefits in money-back policies.
Master "Life Insurance - LIC" in Insurance Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Insurance Awareness Quizzes