Vidyalelo
Commerce · Q615

Insurance

Graduate and Post Graduate · Commerce · question 615

Q615

Which of the following statement is correct?

A.
Endowment assurance has no saving element
B.
Whole Life Plan has no saving element at all
C.
Term Insurance has little or no saving element
Answer
D.
Money Back plan has no savings element

Answer: Option C

Solution

Answer: Option C
Solution:
Term Insurance has little or no saving element. In term policies if you stop paying the premium the risk cover ceases and the policy ends. Nothing is payable to you as there is no savings element in the policy.