The correct answer is: C. In a 20 year endowment policy there can be provision for payment of premium only for a few years.
An endowment policy is a type of life insurance policy that provides a death benefit and a maturity benefit. The death benefit is paid out to the beneficiaries if the insured person dies during the policy term. The maturity benefit is paid out to the insured person if they survive to the end of the policy term.
The premium for an endowment policy is typically paid monthly or annually. However, there are some endowment policies that allow for the payment of premiums only for a few years. These policies are known as limited-payment endowment policies.
Limited-payment endowment policies can be a good option for people who want to save for retirement or another long-term goal. However, it is important to note that these policies typically have higher premiums than traditional endowment policies.
Here is a brief explanation of each option:
- Option A: In endowment policies for 20 years premium is payable for all years under all circumstances. This is not always the case. There are some endowment policies that allow for the payment of premiums only for a few years.
- Option B: There cannot be a single premium policy of 20 years. This is not true. There are some endowment policies that allow for the payment of a single premium. These policies are known as single-premium endowment policies.
- Option C: In a 20 year endowment policy there can be provision for payment of premium only for a few years. This is the correct option.
- Option D: In life insurance terminology premium and price are different. This is true. Premium is the amount of money that is paid to the insurance company in order to maintain the policy. Price is the total amount of money that is paid over the life of the policy.