Insurance mcqs

✅ The correct answer is C.
Surrender value is a %age of Paid up value. Surrender value is the amount payable to the policyholder should he decide to discontinue the policy and encash it. It is payable only after three full years’ premiums have been paid to the insurance company.

✅ The correct answer is C.
Lower yields is not an advantage of cash value insurance contracts. Cash value insurance is permanent life insurance because it provides coverage for the policyholder’s life. Traditionally, cash value insurance has higher premiums than term insurance because of the cash value element.

✅ The correct answer is D.
With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of Level premiums. Level-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.

✅ The correct answer is A.
An inquest is a judicial inquiry in common law jurisdictions, particularly one held to determine the cause of a person’s death. Inquest can also mean such a jury and the result of such an investigation. In general usage, inquest is also used to mean any investigation or inquiry.

✅ The correct answer is B.
This policy is quite risky because your cash value and death benefit can fluctuate according to the performance of your investment portfolio. Therefore, if your underlying investments perform well, then your cash value and death benefit may increase accordingly. If your investments perform worse than you expected, your cash value and death benefit may decrease.

✅ The correct answer is C.
Institute of Insurance and Risk Management (IIRM), Promoted by IRDAI and approved by AICTE is situated in Hyderabad, Telangana has been in existence for over a decade and is mandated to deliver excellence in education that meets the changing need of the fast-growing Industry and Economy at large.

✅ The correct answer is A.
Mortality is taken into account while fixing the premium.

✅ The correct answer is C.
Life insurance policy, in general, is a mixture of Protection and Savings. Life insurance plans are good tax-saving instruments. All the premiums you pay under a term plan are exempt from income tax deductions as per section 80C.

✅ The correct answer is A.
Non-traditional products are also known as Unbundled plans. An unbundled life insurance policy is a type of financial protection plan that provides cash to beneficiaries upon the policyholder’s death.

✅ The correct answer is D.
Specific transaction needs, General transaction needs and Meeting contingencies could be termed the need of an individual.