[Solved] In an endowment insurance policy, what happens if the insured dies during the policy term? — Ans: Sum assured along with accrued bonuses is paid to the nominee | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

In an endowment insurance policy, what happens if the insured dies during the policy term?

AOnly the premiums paid are returned to the nominee

BNo benefit is paid as the policy matures only on survival

CPeriodic survival benefits are paid until the policy term ends

DSum assured along with accrued bonuses is paid to the nominee

Step-by-Step Solution

Step 1: Understand death benefit in endowment policies
If the insured dies during the policy term, the nominee receives the sum assured plus any bonuses accrued.
Final Answer:
Sum assured along with accrued bonuses is paid to the nominee → Option D
Quick Check:
Sum assured along with = correct answer ✅

Quick Trick: Remember, endowment policies pay either on death or maturity, whichever is earlier.

Common Mistakes:

MISTAKES

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In an endowment insurance policy, what happens if the insured dies during the policy term?