Insurance

1. An annuity with infinite life with continuous payments of annuities by the insurer is

Amortised plan of loan
Annuity in perpetuity
APR
Principal

Detailed SolutionAn annuity with infinite life with continuous payments of annuities by the insurer is

2. Liquidation period refers to

Time taken to build up a corpus
Period during which Annuity payments are made by the insurer
Insolvency period
Time between purchase of annuity and start of payment of annuity payments by the insurer

Detailed SolutionLiquidation period refers to

3. State the correct statement

As per IRDA norms ULIPs are allowed but not Variable life plans
Only variable plans are allowed but not ULIP policies as per IRDA norms
Neither of the above plans is allowed in India
Both plans are allowed by the IRDA in India. State the correct statement

Detailed SolutionState the correct statement

4. State the correct options

ULIPS are bundled products
ULIPS have clear aspects of term, expenses and savings components
In ULIP Plans the investment risk is borne by the Insurer
Value of units is determined in advance as per a formula of the Insurer

Detailed SolutionState the correct options

5. Universal Life Insurance is associated with

Universal Life Insurance is associated with Germany
Universal Life plan was first introduced in the UK
France is the home of universal Life policies
USA is known for introducing such policies

Detailed SolutionUniversal Life Insurance is associated with

6. Which is correct?

A convertible Term policy cannot be converted into a whole life policy
A convertible policy can be converted into a money back cover also
A Convertible Term policy can be converted into a whole life policy
A converting term policy can be converted into a decreasing term policy

Detailed SolutionWhich is correct?

7. Stet the correct statement?

In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy
An endowment policy only survival benefit is available
In endowment cover only death benefit is there
Endowment plan and Term insurance are similar in benefits

Detailed SolutionStet the correct statement?

8. State which is correct out of the following

A Term Insurance policy cannot be convered into any other policy during its duration
Term policy is available both a separate policy and as a rider in another policy
Term policy can be issued with lifelong renewability option
All Term covers will have a disability rider

Detailed SolutionState which is correct out of the following

9. Which is the following item is good for wealth accumulation purposes?

Bank loans
Investment in shares
Investment in Term Insurance
Investment in savings bank accounts

Detailed SolutionWhich is the following item is good for wealth accumulation purposes?

10. How does investment duration affect returns?

There is no relationship whatsoever
With greater duration of investment returns are larger
If the duration is larger the rate of returns is likely to be smaller
With greater duration of investment larger tax possibility is likely

Detailed SolutionHow does investment duration affect returns?

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