Question

What happens if the insured survives the term of the contract in a Term insurance policy?

a.

The premiums are refunded with interest.

b.

A surrender benefit is payable.

c.

The Sum Assured is paid out to the nominees.

d.

No benefit is payable.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).No benefit is payable. Explanation:In a Term insurance policy, if the insured survives the term of the contract, no benefit is payable.

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Q. What happens if the insured survives the term of the contract in a Term insurance policy?
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