Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of _________.

A. Sum assured chosen by the buyer

B. Type of policy chosen by the buyer

C. Term of the plan chosen by the buyer

D. Mode of payment (cash, cheque, card) chosen by the buyer

Answer: Option A

Solution(By Examveda Team)

Life insurance companies may offer rebate to the buyer on the premium that is payable on the basis of sum assured chosen by the buyer. They are in most cases the same throughout the term and are expressed as an annual rate. The rebate for sum assured is offered to those who buy policies with higher amounts of sum assured. Rebate for mode of premium: Premiums can be on annual, half yearly, quarterly or monthly basis.