Insurance Awareness - Life Insurance - LIC
Which of the following is a key feature that distinguishes endowment policies from term insurance?
Which of the following is a key feature that distinguishes endowment policies from term insurance?
easy Q13 of 15
Step-by-Step Solution
Step 1: Compare endowment and term insurance
Endowment policies combine life cover with savings, while term insurance provides only pure risk cover without maturity benefits.Final Answer:
Endowment policies provide a savings component along with life cover → Option AQuick Check:
Endowment policies provide a savings component along with life cover correctly highlights the savings feature unique to endowment policies.
Quick Trick: Term insurance = pure protection; Endowment = protection + savings.
Common Mistakes:
MISTAKES- Thinking term insurance offers maturity benefits or bonuses.
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