ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Term Insurance is a type of life insurance coverage that assists your family financially in the case of your untimely death. It is a pure life insurance policy that provides the nominee or beneficiary of the policy with a lump sum payment if the policyholder passes away within the policy term.

Detailed explanation-2: -Single-premium life (SPL) is a type of insurance in which a lump sum of money is paid into the policy in return for a death benefit that is guaranteed until you die.

Detailed explanation-3: -The basic sum assured under LIC policies is the guaranteed cover amount payable to the assigned beneficiary on the death of the life assured. The amount is pre-defined by the policyholder at the time of policy issuance as per his/her assessment of the future needs of their families.

Detailed explanation-4: -Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.

Detailed explanation-5: -Endowment Insurance Plans An endowment plan is a life insurance policy that provides life coverage along with an opportunity to save regularly. This enables you to receive a lump sum amount on the maturity of the policy. In case of death during the policy term, your nominee(s) also receives a death benefit.