GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ plans provide for a “pension” or a mix of a lump sum amount and a pension to be paid to the policyholder or his spouse.
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Fund
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Cover
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Annuity
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Liquidity
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Explanation:
Detailed explanation-1: -Definition: A lump sum amount is defined as a single complete sum of money. A lump sum investment is of the entire amount at one go. For example, if an investor is willing to invest the entire amount available with him in a mutual fund, it will refer to as lump sum mutual fund investment.
Detailed explanation-2: -Most people think of a pension as a Defined Benefit Plan, which provides a set amount each month beginning after retirement and depending on the employee’s length of service and salary. Pension benefits often require employees to remain with an employer for a minimum of years.
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