Question

What characterizes a Full Endowment Plan?

a.

The final payout is lower than the sum assured.

b.

The basic sum assured is equal to the death benefit at the start of the policy.

c.

It does not have a guaranteed sum assured.

d.

The final payout is not affected by the policy's growth.

Posted under IC 89 Management Accounting

Answer: (b).The basic sum assured is equal to the death benefit at the start of the policy. Explanation:A Full Endowment Plan is a with-profits endowment where the basic sum assured is equal to the death benefit at the start of the policy.

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Q. What characterizes a Full Endowment Plan?
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