Insurance Awareness - Life Insurance - LIC
Which life insurance policy provides coverage for the entire lifetime of the insured and pays the sum assured upon death, regardless of when it occurs?
Which life insurance policy provides coverage for the entire lifetime of the insured and pays the sum assured upon death, regardless of when it occurs?
medium Q4 of 15
Step-by-Step Solution
Step 1: Understand policy duration
Whole Life Policies provide coverage for the insured's entire lifetime and pay the sum assured on death whenever it occurs.Step 2: Analyze options
Term Insurance covers a fixed term; Endowment and Money-back policies have fixed maturity periods.Final Answer:
Whole Life Policy → Option AQuick Check:
Lifetime coverage and payout on death at any time is unique to Whole Life policies.
Quick Trick: Whole Life = lifetime coverage until death.
Common Mistakes:
MISTAKES- Confusing Whole Life with Endowment or Term policies due to payout timing.
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