Question

What is the characteristic of a Money Back Policy?

a.

It pays the full sum assured on death.

b.

It pays a percentage of the sum assured on survival at specified intervals.

c.

It provides coverage for a specific period.

d.

It does not pay anything on survival.

Posted under IC 89 Management Accounting

Answer: (b).It pays a percentage of the sum assured on survival at specified intervals. Explanation:A Money Back Policy or Anticipated Endowment Policy pays 20% of the sum assured on survival of 5 years, 40% on survival of 20 years, and the full sum assured on death within 20 years.

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