Multiple choice

In what plan of insurance is medical examination never required, whatever be the amount of sum assured?

  1. Endowment

  2. Pure endowment

  3. Term assurance

  4. Group insurance
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A Correct answer
Explanation

In endowment plan of insurance, medical examination is never required, whatever be the amount of sum insured.

The most common type of plans available in the market with guaranteed returns are called endowment plans. These plans are actually called endowment assurance plans. These are a combination of pure term plan and pure endowment plan. Pure term plan has only death benefit with no maturity benefit, whereas pure endowment plan has only maturity benefit with no death benefit. However, endowment assurance plans have death benefit if the life assured dies within the policy term as well as maturity benefit if he survives till the policy matures. Hence, it is a complete win-win situation for the policyholder. 

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