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Which of the following is covered under life Assurance policy?
- a)Money Back Policy
- b)Declaration policy
- c)Act only
- d)Cargo Insurance
Correct answer is option 'A'. Can you explain this answer?
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Which of the following is covered under life Assurance policy?a)Money ...
As a part of financial planning, term insurance is one of the popular choices to choose. We make financial plans to secure a better future for ourselves and, even more so, for our family in case of certain unforeseen situations or events. Even though term insurance is one of the most sought-after financial tools for future planning, that helps to eliminate uncertainties and distress for near and dear ones, it also comes with certain conditions that vary from one insurance provider to another. Though term insurance is typically meant to cover death, there are certain types of death that are not covered under it. Also, there are certain situations where coverage is subject to some clauses.Money Back Policy.
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Which of the following is covered under life Assurance policy?a)Money ...
Life Assurance policy is a type of insurance policy that provides financial protection to the policyholder and their beneficiaries in the event of the policyholder's death. It offers a lump sum payout to the beneficiaries, which can be used to cover various expenses such as funeral costs, mortgage payments, or any other financial obligations.
The policyholder pays regular premiums to the insurance company, and in return, the company guarantees a payout to the beneficiaries upon the policyholder's death. However, not all life insurance policies are the same, and different policies offer different features and benefits.
Among the options provided, the only one that is covered under a life Assurance policy is a Money Back Policy.
a) Money Back Policy: A Money Back Policy is a type of life insurance policy that provides periodic payouts to the policyholder during the policy term. In addition to the death benefit, it offers survival benefits at regular intervals. For example, if the policy term is 20 years and the policyholder survives at the end of the 5th, 10th, and 15th year, they will receive a percentage of the sum assured as a survival benefit. If the policyholder dies during the term, the full sum assured is paid to the beneficiaries. This type of policy provides both protection and savings elements.
b) Declaration policy: Declaration policy is not specifically related to life assurance. It is a type of insurance policy commonly used in marine insurance, where the policyholder makes periodic declarations of the value of goods to be insured.
c) Act only: "Act only" is not a type of life insurance policy. It may refer to a type of liability insurance policy that covers only the legal liabilities of the insured arising from an act or omission.
d) Cargo Insurance: Cargo insurance is a type of marine insurance that covers the loss or damage to goods during transportation by sea, air, or land. It is not related to life assurance.
In conclusion, a Money Back Policy is the only option listed that is covered under a life assurance policy. It provides both protection and savings elements by offering periodic survival benefits and a death benefit to the policyholder and beneficiaries.
The policyholder pays regular premiums to the insurance company, and in return, the company guarantees a payout to the beneficiaries upon the policyholder's death. However, not all life insurance policies are the same, and different policies offer different features and benefits.
Among the options provided, the only one that is covered under a life Assurance policy is a Money Back Policy.
a) Money Back Policy: A Money Back Policy is a type of life insurance policy that provides periodic payouts to the policyholder during the policy term. In addition to the death benefit, it offers survival benefits at regular intervals. For example, if the policy term is 20 years and the policyholder survives at the end of the 5th, 10th, and 15th year, they will receive a percentage of the sum assured as a survival benefit. If the policyholder dies during the term, the full sum assured is paid to the beneficiaries. This type of policy provides both protection and savings elements.
b) Declaration policy: Declaration policy is not specifically related to life assurance. It is a type of insurance policy commonly used in marine insurance, where the policyholder makes periodic declarations of the value of goods to be insured.
c) Act only: "Act only" is not a type of life insurance policy. It may refer to a type of liability insurance policy that covers only the legal liabilities of the insured arising from an act or omission.
d) Cargo Insurance: Cargo insurance is a type of marine insurance that covers the loss or damage to goods during transportation by sea, air, or land. It is not related to life assurance.
In conclusion, a Money Back Policy is the only option listed that is covered under a life assurance policy. It provides both protection and savings elements by offering periodic survival benefits and a death benefit to the policyholder and beneficiaries.
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Which of the following is covered under life Assurance policy?a)Money Back Policyb)Declaration policyc)Act onlyd)Cargo InsuranceCorrect answer is option 'A'. Can you explain this answer?
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Which of the following is covered under life Assurance policy?a)Money Back Policyb)Declaration policyc)Act onlyd)Cargo InsuranceCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following is covered under life Assurance policy?a)Money Back Policyb)Declaration policyc)Act onlyd)Cargo InsuranceCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is covered under life Assurance policy?a)Money Back Policyb)Declaration policyc)Act onlyd)Cargo InsuranceCorrect answer is option 'A'. Can you explain this answer?.
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