Insurance mcqs

What are the reason(s) for increase in health insurance in India?

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A) Health consciousness
B) Increased longevity
C) Increase in income
D) All of the above
✅ ANSWER: D
Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. Increased income, health consciousness, price liberalization and the introduction of private healthcare financing is bringing the change.

Which of the following statements is incorrect in case of a non-medical case?

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A) In a non-medical case, risk cannot be assessed in the absence of medical report
B) Risk assessment is possible in a non-medical proposal
C) More than 90% of people who submit proposals on their lives are accepted at ordinary rates
D) In preferred lives, the level of anticipated mortality is likely to be lower than even standard lives
✅ ANSWER: A
In a non-medical case, risk can be assessed in the absence of a medical report. No medical report is required in a non-medical case.

What is the meaning of the term non-medical underwriting?

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A) Taking health insurance
B) Buying a medical insurance without medical exam
C) Buying a life insurance without medical exam
D) None of the three
✅ ANSWER: C
Buying a life insurance without medical exam is the meaning of the term non-medical underwriting. No medical exam life insurance policies are term life insurance policies, often with a relatively low face value. You can obtain term life insurance quotes for no exam coverage with no medical exam and perhaps only a few medical questions. Your premiums may be higher based on your answers.

In Unit Linked policies, the risk cover is a multiple of _________

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A) Fund Value
B) Accumulations
C) Net Asset Value
D) Premiums
✅ ANSWER: D
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.

Which of the following options is correct?

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A) Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act
B) Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act
C) Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act
D) There is no upper limit to sum assured in a health insurance policy
✅ ANSWER: B
Section 80D of the Income Tax Act deals with rebates. Tax Benefits of Health Insurance Under Section 80D. Health insurance premium paid for self, spouse, dependent children or parents qualifies for tax deduction up to Rs.25,000. This limit has been increased from Rs.15,000 from the previous year to Rs.25,000.