IC02 - LICENTIATE - Practice Of Life Insurance 16

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Q 1. What is the purpose of Rahul buying an insurance policy?

A) To provide immediate cash benefits

B) To accumulate wealth over time

C) To secure his family's future financial needs

D) To gain tax benefits

E) To invest in high-risk assets

Q 2. What is an 'Endowment Assurance' plan?

A) A plan that provides coverage only in case of survival

B) A plan that provides coverage only in case of death

C) A plan that combines the features of a term plan and a pure endowment plan

D) A plan that guarantees a higher sum assured

E) A plan that offers premium discounts and loyalty rewards

Q 3. Does term insurance provide any savings or investment element?

A) Yes, it includes a savings component

B) Yes, it provides investment returns

C) No, it focuses solely on providing insurance cover

D) Yes, it offers a surrender value option

E) Yes, it offers regular income payments

Q 4. Who is a whole life insurance plan best suited for?

A) Individuals seeking a low-cost insurance option

B) Individuals who want to invest for short-term financial goals

C) Individuals who want to leave behind an estate as a legacy

D) Individuals who require high-risk coverage

E) Individuals who are already retired

Q 5. How are medical ailments treated in a convertible insurance plan? The insurance plan does not cover medical ailments plan

B) Medical ailments require additional premium payments

C) Medical ailments can lead to a reduction in the sum assured

D) Medical ailments have no impact on the benefits of the insurance plan

E) Medical ailments are not considered during the underwriting process

Q 6. Is the Premium Waiver benefit applicable if the proposer commits suicide within one year of the policy?

A) Yes, the Premium Waiver benefit is still applicable.

B) No, the Premium Waiver benefit is not applicable.

C) It depends on the terms and conditions of the policy.

D) It depends on the age of the child.

E) It depends on the premium amount paid.

Q 7. What are the triple benef bunit-linked insurance plans (U offersLIP)?

A) Insurance protection, investment, and income tax benefits

B) Insurance protection, savings, and retirement benefits

C) Insurance protection, loan facility, and estate planning benefits

D) Insurance protection, travel benefits, and medical coverage

E) Insurance protection, rental income, and wealth management benefits

Q 8. What does the Accidental Death Benefit (AD2) rider cover?

A) Risk of disability or death due to an accident

B) Loss of income-earning capacity

C) Increase in insurance coverage without medical examination

D) Monthly income benefit in case of disability

E) Medical check-ups are required to increase the insurance cover

Q 9. What is the primary target group for industrial life insurance?

A) High-income individuals

B) Corporate employees

C) Low-income families

D) Insurance agents

E) Policyholders residing in rural areas

Q 10. Who can be named beneficiaries under the MWP Act for life insurance policies?

A) Only the wife

B) Only the children

C) Wife and children jointly

D) Any relative of the insured

E) Only the surviving beneficiary

Q 11. What is the benefit of cashless treatment in health insurance?

A) It allows the insured to receive treatment at any hospital without limitations.

B) It eliminates the need for the insured to pay for treatment upfront.

C) It provides coverage for all medical expenses, including non-hospitalization expenses.

D) It offers a higher sum insured compared to reimbursement-based policies.

E) It allows the insured to choose any doctor or specialist for treatment.

Q 12. What is the purpose of term insurance?

A) Providing death cover

B) Providing survival benefit

C) Providing returns and tax benefits

D) Providing insurance for an entire lifetime

E) Providing money back at specific intervals

Q 13. What is the purpose of investing in annuities?

A) Wealth accumulation

B) Short-term gains

C) Meeting post-retirement financial needs

D) Speculative investments

E) Funding healthcare expenses

Q 14. What is the premium payment method in a single premium annuity?

A) Lump sum amount

B) Monthly instalments

C) Quarterly instalments

D) Annual instalments

E) Variable payments

Q 15. What happens in a joint life last survivor annuity?

A) The annuitant receives an annuity for their entire life, and the spouse receives 50% of the pension after the annuitant's death.

B) The annuitant receives an annuity for their entire life, and the spouse receives a lump sum payment after the annuitant's death.

C) The annuitant and spouse receive an annuity for a fixed term, and the payment stops after the term ends.

D) The annuitant and spouse receive an annuity for life, but the payment ceases upon the death of either one.

E) The annuitant receives an annuity for their entire life, and the spouse receives a higher percentage of the pension after the annuitant's death.

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