Insurance WAEC

An insurance that could be effected with profit feature is?

A. term insurance
B. public liability insurance
C. endowment assurance
D. personal accident insurance

Correct Answer: Option C

C. endowment assurance

Explanation

An 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 payout in the case of critical illness.

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