The correct answer is A. In Money Back Claim on maturity the balance sum alone is payable along with attached bonus, if any.
A money back policy is a type of life insurance policy that pays out a series of installments to the policyholder over time, rather than a lump sum upon death. The amount of each installment is typically based on the amount of the policy’s death benefit and the number of years the policy has been in force.
On maturity, the policyholder will receive the balance of the policy’s death benefit, plus any attached bonuses. The attached bonus is a percentage of the policy’s death benefit that is paid out if the policy remains in force for the full term.
Money back policies are a good option for people who want to receive regular payments over time, rather than a lump sum upon death. They can also be a good way to save for retirement or other long-term goals.
Here is a brief explanation of each option:
- Option A: In Money Back Claim on maturity the balance sum alone is payable along with attached bonus, if any. This is the correct answer.
- Option B: In the above case full sum assured is payable. This is not correct. In a money back policy, the full sum assured is not payable on maturity. Only the balance sum is payable, plus any attached bonus.
- Option C: Nothing more is payable after the instalments are paid to the assured. This is not correct. In a money back policy, the full sum assured is not payable on maturity. Only the balance sum is payable, plus any attached bonus.
- Option D: On death before the end of the policy in the above case the balance sum is payable. This is correct. If the policyholder dies before the end of the policy term, the balance sum will be paid to the beneficiary.