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which of the folloing is an example of life insurance

Commerce
WAEC 2016

which of the folloing is an example of life insurance

  • A. third party policy
  • B. comprehensive policy
  • C. fidelity guaranteed policy
  • D. endowment policy
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Correct Answer: Option D
Explanation

The 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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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts