Insurance Awareness - Life Insurance - LIC
Which life insurance policy type is most suitable for an individual seeking high market-linked returns along with life cover?
Which life insurance policy type is most suitable for an individual seeking high market-linked returns along with life cover?
medium Q6 of 15
Step-by-Step Solution
Step 1: Identify policy features
ULIPs invest a portion of the premium in market-linked funds, offering potential for higher returns along with life cover.Step 2: Analyze options
Term Insurance offers pure risk cover; Endowment and Whole Life policies offer fixed or guaranteed benefits, not market-linked returns.Final Answer:
Unit Linked Insurance Plan (ULIP) → Option CQuick Check:
ULIPs are designed for investment growth with insurance, making them suitable for this requirement.
Quick Trick: ULIP = investment + insurance for higher returns.
Common Mistakes:
MISTAKES- Confusing ULIPs with traditional policies that do not offer market-linked returns.
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