Vidyalelo
Commerce · Q749

Insurance

Graduate and Post Graduate · Commerce · question 749

Q749

Which of the following statement is correct in respect of Endowment policy?

A.
Shorter the policy term, lesser the investment element
B.
Shorter the policy term, larger the investment element
Answer
C.
Longer the policy term, larger the investment element
D.
Term and investment element do not bear any relationship

Answer: Option B

Solution

Answer: Option B
Solution:
Shorter the policy term, larger the investment element is correct in respect of Endowment policy.