GK
INSURANCE AWARENESS
Question
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____ is the amount of money an insurance policy guarantees to pay before any bonuses are added.

Fund


Annuity


Sum Assured


Maturity Value

Explanation:
Detailed explanation1: Bonus is either computed as a percentage of sum assured or as a certain amount per ₹1000 of sum assured. For example, if the bonus is ₹ 50 per ₹1000 for a policy with a sum assured of ₹ 1 lakh, the annual bonus will be ₹ 5000. For a policy term of 10 years, the simple reversionary bonus comes out to be ₹ 50, 000.
Detailed explanation2: Guaranteed additions are calculated at a rate per every thousand of sum assured. They are added to the basic sum assured and are payable on admittance of claim. This benefit is allowed only for each year for which premiums are paid.
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