[Solved] What happens to the death benefit in a Money Back Policy if the insured dies during the policy term after some survival benefits have been paid? | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

What happens to the death benefit in a Money Back Policy if the insured dies during the policy term after some survival benefits have been paid?

AThe nominee receives the full sum assured irrespective of survival benefits paid

BOnly the survival benefits paid so far are paid to the nominee

CThe death benefit is reduced by the amount of survival benefits already paid

DNo death benefit is payable if survival benefits have been paid

Step-by-Step Solution

Step 1: Understand death benefit in Money Back Policies
The death benefit is the full sum assured paid to the nominee if the insured dies during the policy term, regardless of survival benefits already paid.
Step 2: Analyze options
Only the survival benefits paid so far are paid to the nominee is incorrect because the nominee gets more than survival benefits. The death benefit is reduced by the amount of survival benefits already paid is wrong as death benefit is not reduced. No death benefit is payable if survival benefits have been paid is incorrect as death benefit is always payable.
Final Answer:
The nominee receives the full sum assured irrespective of survival benefits paid → Option A
Quick Check:
This ensures continuous life cover throughout the policy term.

Quick Trick: Death benefit remains full sum assured irrespective of survival benefits.

Common Mistakes:

MISTAKES

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What happens to the death benefit in a Money Back Policy if the insured dies during the policy term after some survival benefits have been paid?