Q: Q3 - written test 2 - business services -
The question is about taking an insurance for Mr.Ajay's daughter Mellisa. But the answer to the question given is "ANNUITY POLICY".
Is'nt the answer "CHILDREN ENDOWMENT POLICY" ?
Hey Zainaba,
No, the answer to the above question is "Annuity Policy' as under Annuity Policy the insured is paid the amount due in regular instalments after he or she reaches a certain age. As per the question, Mellisa is paid the amount i.e. Rs 20 lacs in annual instalments of Rs 2.5 lacs after Mallisa's 25th birthday.
On the other hand, under Children Endowment Policy, a specified amount is paid to the insured (not in instalments) when his/her child for whom the policy is taken attains a particular age.
Hope this clears your doubt.
No, the answer to the above question is "Annuity Policy' as under Annuity Policy the insured is paid the amount due in regular instalments after he or she reaches a certain age. As per the question, Mellisa is paid the amount i.e. Rs 20 lacs in annual instalments of Rs 2.5 lacs after Mallisa's 25th birthday.
On the other hand, under Children Endowment Policy, a specified amount is paid to the insured (not in instalments) when his/her child for whom the policy is taken attains a particular age.
Hope this clears your doubt.