Insurance Awareness - Life Insurance - LIC
Which type of life insurance policy offers coverage for a fixed term and does not pay any benefit if the insured survives the policy period?
Which type of life insurance policy offers coverage for a fixed term and does not pay any benefit if the insured survives the policy period?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand policy characteristics
Term Insurance provides coverage for a specified period and pays the sum assured only if the insured dies during that term.Step 2: Analyze options
Whole Life Policy covers lifetime; Endowment and Money-back policies pay maturity benefits if the insured survives.Final Answer:
Term Insurance → Option CQuick Check:
Term Insurance is the only policy that pays no benefit if the insured survives the term, confirming the answer.
Quick Trick: Remember, Term Insurance = no survival benefit, only death benefit during term.
Common Mistakes:
MISTAKES- Confusing Term Insurance with Endowment or Money-back policies that pay maturity benefits.
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