Insurance mcqs

Under Immediate annuity, the premium has to be paid

by
A) In regular instalments
B) In lumpsum
C) Both A & B
D) None of the above
✅ ANSWER: B
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.

Pick out the incorrect statement.

by
A) In a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment
B) If a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential
C) There is no such thing as non-medical underwriting
D) Ration card is a non-standard proof of age
✅ ANSWER: C
Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process. This product is a fully underwritten product which allows for rapid decision on available medical criteria.

Which of the below option is correct with regards to a term insurance plan?

by
A) Term insurance plans come with life-long renewability option
B) All term insurance plans come with a built-in disability rider
C) Term insurance can be bought as a stand-alone policy as well as a rider with another policy
D) There is no provision in a term insurance plans to convert it into a whole life insurance plan
✅ ANSWER: C
Term insurance can be bought as a stand-alone policy as well as a rider with another policy. Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.