Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What does the term "endowment age" signify?

It indicates the age at which premiums are fully paid.

It signifies the age at which benefits are distributed from a plan.

The term "endowment age" signifies the age at which the policyholder or insured individual is eligible to receive benefits from an endowment policy. An endowment policy combines life insurance with a savings component, ensuring that a lump sum is paid out either upon the insured reaching a specific age, termed the endowment age, or upon their death, whichever comes first.

In practice, this means that once the policyholder reaches the endowment age, they can expect to receive the accumulated benefits, which may include the invested premiums plus any interest or bonus, depending on the terms of the policy. It is a crucial concept for individuals who are planning their financial future and for those assessing the maturity and payout of their endowment contracts.

Selecting the age at which benefits are disbursed is essential for policyholders to align their financial goals and anticipated life stages with the terms of their endowment policy.

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It refers to the age an insured must reach to take a loan against their policy.

It represents the age limit for purchasing an endowment policy.

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