Vidyalelo
Commerce · Q885

Insurance

Graduate and Post Graduate · Commerce · question 885

Q885

A loan-cum revival would mean –

A.
Granting a loan
B.
Revival of the policy
C.
Both A & B
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
A loan-cum revival would mean Granting a loan and Revival of the policy. If a policy acquires the surrender value, the date of the policy can be revived by a policy loan. The loan amount will be calculated and treated as premiums paid upto the date of the revival. If a loan amount is more than the required revival, the excess will be paid to the policyholder.