State which of the following statements is correct

A. In ULIPs the insurance cover must be a minimum multiple of the premium

B. ULIPs can be surrendered after two years

C. Both the above statements are correct

D. Both the above statements are wrong

Answer: Option A

Solution(By Examveda Team)

In ULIPs the insurance cover must be a minimum multiple of the premium. ULIPs determine the cover as a multiple of the annual premium. If you are looking for an investment avenue, choose a plan with the lowest Sum Assured because a higher cover means a higher mortality charge.