Insurance mcqs

✅ The correct answer is B.
Insurance is not a tangible good. Life insurance can be a very important asset to have, protecting your family against potential hardship.

✅ The correct answer is B.
Endowment plan is a type of life insurance plan, which is a combination of insurance and savings. A certain amount is kept for life cover – insurance, while the rest is invested by the life insurance company. In an endowment plan, if the life assured outlives the policy term, the insurance company offers him the maturity benefit. Moreover, endowment plans may offer bonuses periodically, which are paid either on maturity or to the nominee under death claim. On death, the death benefit is payable to the nominee. Endowment plans are commonly known as traditional life insurance, although, there is an investment component the risk is lower than the other investment products and so are the returns.

✅ The correct answer is B.
The application document used for making the proposal is commonly known as the ‘proposal form’.

✅ The correct answer is C.
It would be advantageous to go for a family floater rather than non-floater due to the reason that higher cover would help any family member in case of high cost treatment and premiums are considerably lower than where cover is taken for individual members.

✅ The correct answer is B.
Revival of a policy is not a unconditional right of the insured.

✅ The correct answer is C.
ULIP’s are transparent with regards to their term, expenses and savings components. The value of each unit of a fund is determined by dividing the total value of the fund’s investments by the total number of units.

✅ The correct answer is C.
The term TPA refers to Third Party Administrator. Third Party Administration (TPA) is a service given to a Mediclaim policyholder by providing cashless facility for all hospitalizations that come under the scope of his/her Mediclaim policy.

✅ The correct answer is A.
Defined Benefit type of occupational pension has fallen into trouble in recent times.

✅ The correct answer is D.
Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for the equity-linked savings scheme, the national savings certificates and the endowment insurance policy investments are allowed to be deducted from his taxable income.

✅ The correct answer is A.
If Liabilities are undervalued it would result in more surplus.