Question

What does the sum assured in a life insurance policy imply?

a.

It signifies the total amount to be paid by the policyholder over the policy's term.

b.

It indicates the minimum guaranteed rate of return on the policy.

c.

It represents the financial security provided by the insurance contract.

d.

It is the cash value of the policy at any given time.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It represents the financial security provided by the insurance contract. Explanation:The sum assured in a life insurance policy implies that life insurance is regarded as financial security because the sum insured is guaranteed by the contract.

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Q. What does the sum assured in a life insurance policy imply?
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