Insurance Awareness - Life Insurance - LIC
Which of the following statements about endowment insurance policies is TRUE?
Which of the following statements about endowment insurance policies is TRUE?
medium Q15 of 15
Step-by-Step Solution
Step 1: Analyze each statement
They pay periodic survival benefits throughout the policy term describes money-back policies, not endowment. They provide a lump sum only if the insured survives the policy term ignores death benefits. They do not pay any benefit if the insured dies during the policy term is incorrect as death benefits are payable. They combine life cover with a savings element and pay benefits on death or maturity correctly states the dual nature of endowment policies.Final Answer:
They combine life cover with a savings element and pay benefits on death or maturity → Option BQuick Check:
They combine life cover with a savings element and pay benefits on death or maturity accurately reflects the fundamental feature of endowment insurance policies.
Quick Trick: Remember endowment policies pay on death or maturity, not periodic survival benefits.
Common Mistakes:
MISTAKES- Confusing endowment policies with money-back or term insurance.
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