Q1.
Life Insurance products are based on core risk coverage needs of individuals as well as their long term investment concerns.
Q2.
(I) Term ‘assurance plans’ offer pure risk cover and are similar to other general insurance contracts that cover property or liability.
(II) Endowment insurance guarantees a death benefit cover throughout the course of life, provided the required premiums are paid.
Q3.
Under which plan, there is a uniform premium and benefit throughout the term of the policy.
Q4.
Under which plan, the premium is constant throughout the term, but the benefit decreases over a period of time.
Q5.
Under which plan, the premium as well as the benefit amount increases periodically, as agreed.
Q6.
(I) Deferred Annuity is typically purchased when a person reaches retirement age and has a lump sum to invest.
(II) Immediate Annuity is purchased with a single premium called purchase price.
Q7.
(I) Section 37 of the Insurance Act provides for assignment of a life insurance policy to another party.
(II) Section 38 of the Insurance Act similarly provides for the life insured to nominate a person called as a nominee.
Q8.
In case of Term Insurances, the claim is payable either on death during the term or maturity at the end of the term.
Q9.
(I) Maturity claims are payable in case of endowment policies.
(II) Death claims are payable in case of term and whole policies.
Q10.
The person who transfers the rights is called assignee and the person to whom property is transferred is called assignor.
Q11.
(I) Revival is the process whereby a life insurance company puts back into force a policy that has lapsed for non payment of premium.
(II) A rider may be defined as a special benefit or group of benefits that does not form part of the main body of the life insurance contract but is provided as an add on, for payment of an extra premium.
Q12.
The more the cash value element in the premium, the less it is considered as a savings oriented insurance policy.
Q13.
The estimation of present value brings us to the next element in premium determination, namely _____________.
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