IC23 APPLICATIONS OF LIFE INSURANCE - 19

Que. 1 : Q1) Which of the following is not an estate planning tool?

   1.  a) Will

   2.  b) Succession certificate

   3.  c) Life insurance trust

   4.  d) Bank FD

Que. 2 : Q2) The islamic Insurance Company of Sudan was established in _______ as the first formalised Takaful provider, countries in the GCC followed soon.

   1.  a) 1959

   2.  b) 1969

   3.  c) 1979

   4.  d) 1989

Que. 3 : Q3) Which type of employer based retirement plans pay either a lumpsum or a guaranteed monthly benefit upon retirement and the amount received upon retirement is normally based on a preset formula?

   1.  a) Defined contribution plans

   2.  b) Deferred compensation plans

   3.  c) Defined benefit plans

   4.  d) None of these

Que. 4 : Q4) Which of the is just opposite to life insurance and a person entering into an contract agrees to pay a specified sum of capital to the insurer and the insurer in return promises to pay the insured a series of payments until insured's death?

   1.  a) Endowment plan

   2.  b) Convertible term plan

   3.  c) Annuity

   4.  d) Unit linked policy

Que. 5 : Q5) What are the advantages of health insurance to an individual?

   1.  a) Health insurance does not require an individual to build a reserve fund for medical expenses.

   2.  b) Health insurance provides a cushion for individual's resources meant for other financial goals.

   3.  c) Health insurance provides income tax benefits to an individual.

   4.  d) All of the above