ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the owner dies before the insured, the policy remains in force (because the life insured is still alive). If the policy had a contingent owner designation, the contingent owner becomes the new policy owner.

Detailed explanation-2: -the insurance company agrees to pay a sum of money upon the death of the insured person. the beneficiary – the person or persons named by the policy owner – will receive policy proceeds (benefit) upon the death of the insured person.

Detailed explanation-3: -Cash surrender value is money an insurance company pays to a policyholder or an annuity contract owner if their policy is voluntarily terminated before maturity or an insured event occurs. This cash value is the savings component of most permanent life insurance policies, particularly whole life insurance policies.

Detailed explanation-4: -Endowment insurance provides for the payment of the face amount to your beneficiary if death occurs within a specific period of time such as twenty years, or, if at the end of the specific period you are still alive, for the payment of the face amount to you.