Question

What does the term "Guaranteed Maturity Benefit" refer to in insurance contracts?

a.

The amount of benefit payable upon the death of the policyholder

b.

Additional benefits provided to the policyholder during the premium paying period

c.

The fixed and predetermined amount of benefit payable on the date of maturity

d.

An option for the policyholder to convert the policy into a different type of contract

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The fixed and predetermined amount of benefit payable on the date of maturity Explanation:Guaranteed Maturity Benefit refers to the fixed and predetermined amount of benefit that is guaranteed to be payable on the date of maturity of the insurance contract.

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Q. What does the term "Guaranteed Maturity Benefit" refer to in insurance contracts?
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