A) Gratuity plan
B) Decreasing term insurance plan
C) Annofy plan
D) Increasing term insurance plan
E) Combination of a term insurance plan and a pure endowment plan
Correct Answer: E
Solution :
An endowment plan is actually a combination of two plans:| A term assurance plan which pays the full sum assured in case of death of the insured during the term; |
| A pure endowment plan which pays this amount if the insured survives at the end of the term. The product thus has both a death and a survival benefit component. From an economic point of view, the contract is a combination of decreasing term insurance and an increasing investment element. |
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