Multiple choice

Which plan is suitable for accumulation of specific sum of money?

  1. Whole life

  2. Endowment

  3. Money back

  4. Term insurance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

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