Insurance Awareness - Life Insurance - LIC
How do Money Back Policies differ from Endowment Policies?
How do Money Back Policies differ from Endowment Policies?
medium Q14 of 15
Step-by-Step Solution
Step 1: Compare survival benefits
Money Back Policies pay survival benefits periodically during the policy term, whereas Endowment Policies pay the sum assured as a lump sum only at maturity.Step 2: Check life cover
Both policies provide life cover during the term.Final Answer:
Money Back Policies pay survival benefits periodically, Endowment Policies pay lump sum only at maturity → Option AQuick Check:
This is a key distinguishing feature often tested in exams.
Quick Trick: Remember: Money Back = periodic payouts; Endowment = lump sum at maturity.
Common Mistakes:
MISTAKES- Assuming Endowment Policies also pay survival benefits periodically.
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