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    Question

    ___________ is a type of life insurance policy

    designed to pay a lump sum on maturity or on death.
    A Endowment Policy Correct Answer Incorrect Answer
    B Lump Sum Policy Correct Answer Incorrect Answer
    C Life Term Policy Correct Answer Incorrect Answer
    D Long Term Policy Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    An endowment policy is a type of life insurance policy designed to pay a lump sum on maturity or on death. An endowment policy can be used to build a risk-free savings corpus, while providing financial protection for family in case of an unfortunate event. This simplicity of an endowment plan has over the years made it an attractive savings plan for all.

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