Insurance Awareness - Life Insurance - LIC
Which of the following best describes an endowment insurance policy?
Which of the following best describes an endowment insurance policy?
easy Q11 of 15
Step-by-Step Solution
Step 1: Identify the concept
An endowment insurance policy combines life cover with a savings component, paying benefits either on maturity or on death during the policy term.Final Answer:
Provides life cover and pays a lump sum on maturity or death during the policy term → Option AQuick Check:
Provides life cover and pays a lump sum on maturity or death during the policy term correctly captures the dual benefit nature of endowment policies, unlike other options.
Quick Trick: "Endowment = End of term + Death benefit" helps identify this policy type quickly.
Common Mistakes:
MISTAKES- Confusing endowment policies with term insurance or money-back policies.
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