Insurance Awareness - Life Insurance - LIC
In Money Back Policies, how is the sum assured typically distributed?
In Money Back Policies, how is the sum assured typically distributed?
medium Q5 of 15
Step-by-Step Solution
Step 1: Understand sum assured distribution in Money Back Policies
Survival benefits are periodic fixed percentages of the sum assured paid during the policy term, and the balance sum assured is paid at maturity.Step 2: Evaluate options
Entire sum assured is paid as survival benefits during the policy term is incorrect as entire sum assured is not paid during the term. Sum assured is paid only on death of the insured is wrong because sum assured is also paid at maturity if the insured survives. Sum assured is paid as a lump sum at the start of the policy is incorrect as sum assured is not paid upfront.Final Answer:
Survival benefits are paid as fixed percentages of the sum assured at intervals, and the remaining sum assured is paid at maturity → Option DQuick Check:
This clarifies the structure of payments in Money Back Policies.
Quick Trick: Sum assured is split between survival benefits and maturity payout.
Common Mistakes:
MISTAKES- Assuming survival benefits reduce death benefit or sum assured is paid upfront.
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