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      Question

      A contract between you and an insurance company in which

      you make a lumpsum paymentor a series of payments and in return obtain regular disbursements beginning either immediately or at some point in the future is called?
      A term insurance Correct Answer Incorrect Answer
      B annuity plan Correct Answer Incorrect Answer
      C ULIP Correct Answer Incorrect Answer
      D hybrid policy Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      An annuity is a plan that helps you to get a regular payment for life after making a lump sum investment. The life insurance company invests the money of the investor and pays back the returns generated from it.

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