Q416
Which of the below statement is correct with regards to endowment assurance plan?
A.
It has a death benefit component only
B.
It has a survival benefit component only
C.
It has both a death benefit as well as a survival component
AnswerD.
It is similar to a term plan
Answer: Option C
Solution
Answer: Option C
Solution:
Endowment assurance plan has both a death benefit as well as a survival component. Endowment plan is a life insurance policy which provides you with a combination of both i.e.: an insurance cover, as well as an savings plan. It helps you in saving regularly over a specific period of time, so that you are able to get a lump sum amount on policy maturity, if the policyholder survives the policy term.