The correct answer is A. Sum insured.
A money back plan is a type of life insurance policy that pays out a portion of the sum insured at regular intervals, usually every year, while the policyholder is still alive. The remaining sum insured is then paid out to the policyholder’s beneficiaries upon their death.
The sum insured is the amount of money that the insurance company will pay out if the policyholder dies. It is usually specified in the policy contract.
The survival benefits are the payments that the policyholder receives while they are still alive. These payments are usually made at regular intervals, such as every year.
The bonus is an additional amount of money that the insurance company may pay out to the policyholder, depending on the performance of the insurance company’s investments.
If the policyholder dies, the insurance company will pay out the sum insured to the policyholder’s beneficiaries. This amount will not be reduced by any survival benefits that have already been paid to the policyholder.
Here is a table that summarizes the different options and their explanations:
| Option | Explanation |
|—|—|
| A. Sum insured | The sum insured is the amount of money that the insurance company will pay out if the policyholder dies. It is usually specified in the policy contract. |
| B. Sum insured less survival benefits paid already | This option is incorrect because the sum insured is not reduced by any survival benefits that have already been paid to the policyholder. |
| C. Bonus | This option is incorrect because the bonus is an additional amount of money that the insurance company may pay out to the policyholder, depending on the performance of the insurance company’s investments. The bonus is not guaranteed and may not be paid out in all cases. |
| D. Nothing is payable | This option is incorrect because the insurance company will always pay out the sum insured if the policyholder dies. |