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Commerce · Q256

Insurance

Graduate and Post Graduate · Commerce · question 256

Q256

Term insurance possesses which of the following properties?

A.
Savings benefit
B.
Death benefit
Answer
C.
Maturity benefit
D.
Bonus benefit

Answer: Option B

Solution

Answer: Option B
Solution:
Term insurance plan is pure risk cover which pays out the sum assured in case of death and does not have any maturity benefits. You do not get any maturity benefits in a pure term plan because it is a pure protection insurance plan.