Which of the below statement is correct with regards to endowment assurance plan?

A. It has a death benefit component only

B. It has a survival benefit component only

C. It has both a death benefit as well as a survival component

D. It is similar to a term plan

Answer: Option C

Solution(By Examveda Team)

Endowment assurance plan has both a death benefit as well as a survival component. Endowment plan is a life insurance policy which provides you with a combination of both i.e.: an insurance cover, as well as an savings plan. It helps you in saving regularly over a specific period of time, so that you are able to get a lump sum amount on policy maturity, if the policyholder survives the policy term.