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    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.

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