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In a life insurance contract, the stated sum of money to be paid to the beneficiary upon the insured’s death is termed as _________

A. Face Amount

B. Face Amount

C. Face Amount

D. Extra Expense Insurance

Answer: Option C

Solution(By Examveda Team)

In a life insurance contract, the stated sum of money to be paid to the beneficiary upon the insured’s death is termed as Face Amount. Also called the Coverage Amount, Face Amount or Sum Insured. A contract that pays a fixed sum of money at regular intervals, usually for life. A contract that pays an income for a set number of years, and will pay the annuitant's beneficiary or estate if the annuitant dies before the end of the payment term.

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State which is correct out of the following

A. A Term Insurance policy cannot be convered into any other policy during its duration

B. Term policy is available both a separate policy and as a rider in another policy

C. Term policy can be issued with lifelong renewability option

D. All Term covers will have a disability rider