[Solved] In a Money Back Policy, which of the following best describes the payment of survival benefits? — Ans: Survival benefits are paid periodically during the policy term if the insured... | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

In a Money Back Policy, which of the following best describes the payment of survival benefits?

ASurvival benefits are paid only at the end of the policy term

BSurvival benefits are paid as a lump sum along with the maturity benefit

CSurvival benefits are paid only if the insured dies during the policy term

DSurvival benefits are paid periodically during the policy term if the insured survives

Step-by-Step Solution

Step 1: Understand survival benefits in Money Back Policies
Survival benefits are periodic payments made to the policyholder during the policy term if they survive the specified intervals.
Step 2: Evaluate options
Survival benefits are paid only at the end of the policy term is incorrect because survival benefits are not paid only at maturity. Survival benefits are paid only if the insured dies during the policy term is wrong as survival benefits are not paid on death. Survival benefits are paid as a lump sum along with the maturity benefit is incorrect because survival benefits are paid periodically, not as a lump sum with maturity.
Final Answer:
Survival benefits are paid periodically during the policy term if the insured survives → Option D
Quick Check:
This is a fundamental feature distinguishing Money Back Policies from other life insurance plans.

Quick Trick: Remember: 'Money Back' means money is paid back periodically during the term.

Common Mistakes:

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In a Money Back Policy, which of the following best describes the payment of survival benefits?