Which of the following is an example of life insurance?

A. third-party policy
B. comprehensive policy
C. fidelity guaranteed policy
D. endowment policy

Correct Answer: Option D

D. endowment policy

Explanation

The 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.