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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of Whole Life insurance policies?

View solution

Q. What is the characteristic of Term Insurance plans?

View solution

Q. What is the definition of a venture capital undertaking?

View solution

Q. What is the definition of a venture capital fund?

View solution

Q. How can an AIF raise funds?

View solution

Q. What are some types or nature of AIFs?

View solution

Q. What is the definition of AIF (Alternative Investment Fund)?

View solution

Q. What types of ratios are used for evaluating the performance of mutual funds?

View solution

Q. What risk factor is associated with mutual funds and securities investments?

View solution

Q. What are some advantages of mutual funds?

View solution

Q. What is the requirement for the relationship between the fund sponsor, trustees, custodian, and Asset Management Company in a mutual fund?

View solution

Q. How have Indian mutual funds been organized?

View solution

Q. What risk factors are associated with mutual fund investments?

View solution

Q. What is the role of unit-holders in a mutual fund?

View solution

Q. What is the main purpose of a mutual fund?

View solution

Q. What distinguishes bank deposits from company deposits in terms of guarantees?

View solution

Q. Why is due diligence important for investors considering company fixed deposits?

View solution

Q. What is solvency, and how does it relate to the safety of fixed deposits?

View solution

Q. What is the significance of a company's strong financial strength and goodwill in the context of fixed deposits?

View solution

Q. What is one of the reasons why companies offer higher interest rates on their fixed deposits compared to bank fixed deposits?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....