Question

What is the primary purpose of an endowment life insurance policy?

a.

To provide coverage for a specified time period.

b.

To provide coverage for the entire lifetime of the insured.

c.

To accumulate a cash value for the insured.

d.

To provide a living benefit and protect against premature death.

Posted under IC 89 Management Accounting

Answer: (d).To provide a living benefit and protect against premature death. Explanation:An endowment life insurance policy is designed primarily to provide a living benefit and secondarily to provide life insurance protection.

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Q. What is the primary purpose of an endowment life insurance policy?
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