[Solved] Which of the following statements is TRUE about the maturity benefit in Whole Life Insurance policies? | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

Which of the following statements is TRUE about the maturity benefit in Whole Life Insurance policies?

AMaturity benefit is paid only if the insured survives the policy term

BMaturity benefit is paid on death of the insured or surrender of the policy

CWhole Life Insurance policies do not have a maturity benefit as coverage is lifelong

DMaturity benefit is paid only after 20 years of policy commencement

Step-by-Step Solution

Step 1: Understand maturity benefits in Whole Life Insurance
Whole Life Insurance provides a death benefit payable on the death of the insured and a surrender value if the policy is surrendered before death.
Step 2: Analyze options
Maturity benefit is paid on death of the insured or surrender of the policy correctly states that maturity benefit is payable on death or surrender. Maturity benefit is paid only if the insured survives the policy term is incorrect as there is no fixed term survival benefit. Whole Life Insurance policies do not have a maturity benefit as coverage is lifelong is wrong because surrender value acts as maturity benefit. Maturity benefit is paid only after 20 years of policy commencement is incorrect as there is no fixed 20-year maturity period.
Final Answer:
Maturity benefit is paid on death of the insured or surrender of the policy → Option B
Quick Check:
Whole Life Insurance pays benefits on death or surrender, confirming Maturity benefit is paid on death of the insured or surrender of the policy as correct.

Quick Trick: Maturity benefit = Death benefit or surrender value.

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