📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under which type of plans, an insurance that provides

    coverage at a fixed rate of payments for a limited period of time is called? 
    A Term insurance Correct Answer Incorrect Answer
    B Unit Linked Insurance Plans Correct Answer Incorrect Answer
    C Endowment assurance Correct Answer Incorrect Answer
    D Whole life insurance Correct Answer Incorrect Answer
    E Medical Insurance Correct Answer Incorrect Answer

    Solution

    It is the most basic type of insurance and can be referred to as pure insurance. It covers the insured for a specific period. The insured’s family gets a lump-sum amount in the case of the insured’s death. If, however, the insured survives the term of the policy, no money is paid to the insured or his family.

    Practice Next
    More Insurance Awareness Questions
    ask-question