Q250
Which plan is suitable for accumulation of specific sum of money?
A.
Whole life
B.
Endowment
AnswerC.
Money back
D.
Term insurance
Answer: Option B
Solution
Answer: Option B
Solution:
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.