Q623
State the correct statement out of the following ones.
A.
Credit Life Insurance policy is an endowment plan
B.
Mortgage Redemption plan is also an endowment plan
C.
Whole life plan is also an endowment plan
D.
Money Back plan is a kind of endowment plan
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The endowment plans pays the money, which includes the sum assured (or cover) and bonus, on the maturity of the policy. Money back policy, on the other hand, returns money usually as a fixed percentage of the sum assured to the insured during the term of the policy at some regular frequency (e.g. 5 years).