Multiple choice

The amount an insurance company would pay to the nominee, if a policyholder died is known as the

  1. premium

  2. sum assured

  3. face value

  4. real value
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The sum assured is the guaranteed amount the insurance company commits to pay to the nominee upon the policyholder's death. Premium is what you pay to buy the policy, face value is similar to sum assured, and real value refers to inflation-adjusted value.

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