A life policy that pays the sum assured if the policy holder dies anytime within the policy period is

Answer Details

A life policy that pays the sum assured if the policyholder dies anytime within the policy period is called term assurance. In simpler terms, term assurance is a type of life insurance policy that provides coverage for a specified period, usually between one to thirty years. If the policyholder passes away during the term of the policy, the death benefit (also known as the sum assured) is paid out to the beneficiary. However, if the policyholder survives the term of the policy, the policy will expire, and no benefits will be paid out. Term assurance is a popular choice for people who want to ensure that their loved ones are financially protected in case of their untimely death. It is also generally more affordable than other types of life insurance policies, such as whole life insurance or universal life insurance, as it only provides coverage for a specified period.