[Solved] In a Money Back Policy, what happens if the insured dies during the policy term? — Ans: The full sum assured is paid to the nominee irrespective of survival benefits... | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

In a Money Back Policy, what happens if the insured dies during the policy term?

AThe full sum assured is paid to the nominee irrespective of survival benefits already paid

BNo benefit is paid as the policy terminates immediately

COnly the survival benefits paid so far are given to the nominee

DOnly the maturity benefit is paid after the policy term ends

Step-by-Step Solution

Step 1: Understand death benefit in Money Back Policies
If the insured dies during the policy term, the nominee receives the full sum assured regardless of survival benefits paid.
Final Answer:
The full sum assured is paid to the nominee irrespective of survival benefits already paid → Option A
Quick Check:
This ensures life cover is maintained throughout the policy term.

Quick Trick: Life cover in Money Back Policies is always full sum assured during the term.

Common Mistakes:

MISTAKES

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