Question

What is an Endowment Policy in insurance?

a.

An insurance contract with only a savings component

b.

An insurance contract with a life insurance protection component but no savings component

c.

An insurance contract with a savings component involving asset accumulation and a life insurance protection component

d.

An insurance contract with no maturity benefits

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).An insurance contract with a savings component involving asset accumulation and a life insurance protection component Explanation:An Endowment Policy is an insurance contract with a savings component involving asset accumulation and a life insurance protection component. It provides a sum assured payout upon death before maturity and pays out the accumulated amount at maturity.

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Q. What is an Endowment Policy in insurance?
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