The correct answer is: A. Higher of the sum assured or the fund value
A ULIP (Unit-Linked Insurance Plan) is a type of life insurance policy that combines life insurance with investment. The policyholder pays premiums, which are invested in a fund. The fund value grows over time, and the policyholder can choose to withdraw the money at any time. If the policyholder dies, the sum assured is paid out to the beneficiaries.
If a ULIP claim is made before the date of maturity, the policyholder will receive the higher of the sum assured or the fund value. The sum assured is the amount of money that is guaranteed to be paid out to the beneficiaries if the policyholder dies. The fund value is the amount of money that is in the investment fund at the time of the claim.
The policyholder may also be entitled to a surrender value if they withdraw the money from the policy before the date of maturity. The surrender value is the amount of money that is left in the policy after the fees and charges have been deducted.
Here is a brief explanation of each option:
- Option A: Higher of the sum assured or the fund value. This is the correct answer. If a ULIP claim is made before the date of maturity, the policyholder will receive the higher of the sum assured or the fund value.
- Option B: Lower of the sum assured or the fund value. This is not the correct answer. The policyholder will receive the higher of the sum assured or the fund value.
- Option C: Return of premiums with savings bank rate of interest. This is not the correct answer. The policyholder may be entitled to a surrender value if they withdraw the money from the policy before the date of maturity, but this will be less than the amount of premiums that they have paid.
- Option D: Surrender value. This is not the correct answer. The surrender value is the amount of money that is left in the policy after the fees and charges have been deducted. It is usually less than the amount of premiums that the policyholder has paid.