Question

What is the characteristic of a Pure Endowment policy?

a.

The face value is payable only if the insured dies during the endowment period.

b.

It guarantees a fixed sum assured at the start of the policy.

c.

Payments continue even if the policyholder dies before the specified date.

d.

The face value is payable only if the insured survives to the end of the stated endowment period.

Posted under IC 89 Management Accounting

Answer: (d).The face value is payable only if the insured survives to the end of the stated endowment period. Explanation:A Pure Endowment policy is a life insurance policy where the face value is payable only if the insured survives to the end of the stated endowment period; no benefit is paid if the insured dies during the endowment period.

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