Insurance mcqs

✅ The correct answer is D.
Insurance purchase is not a strategy to maximise discretionary income.

✅ The correct answer is C.
Distribution of terminal bonuses is a way out for insurance companies to Reward the policyholders for ins.cos’ unrealized gains and achieve equity among different generations of policyholders.

✅ The correct answer is D.
Ordinary revival, Special Revival, Instalment revival is the way to revival a lapsed policy of life insurance. The revival of life insurance policy is required when the insured fails to pay the premium within the grace period and the coverage of the policy lapses.

✅ The correct answer is C.
Benefit under a Unit Linked policy is reckoned by the value of the units and the number of units standing to the credit of the unit holder.

✅ The correct answer is D.
Postponement of consumption and parting with liquidity are involved in a savings proposition.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.

✅ The correct answer is C.
Earned surplus is the sum of a company’s profits, after dividend payments, since the company’s inception. A portion of the surplus would be left for distribution to shareholders.

✅ The correct answer is A.
In Endowment plan of insurance medical examination is never required.

✅ The correct answer is C.
Accumulation and Payout phases are the two distinct phases of a deferred annuity. A deferred payment annuity is an insurance product that provides future payments to the buyer rather than an immediate stream of income.

✅ The correct answer is B.
Loan value is a percentage of Surrender Value. The loan amount you can take out is a percentage of its surrender value. Usually, loans can be availed up to 80-90% of the surrender value of traditional plans with guaranteed returns.

✅ The correct answer is D.
Increase in risk type of alterations is not permitted.