Question

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

a.

To provide living benefits

b.

To provide coverage for a specified period

c.

To spread the cost of insurance cover over a longer period

d.

To provide life insurance protection primarily and living benefits secondarily

Posted under IC 89 Management Accounting

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

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