Insurance MCQ Questions and Solutions with Explanations | Commerce

A. Increase

B. Decrease

C. Remain constant

D. Are returned

A. Whole life policy

B. Mortgage policy

C. Bank FD

D. Decreasing term policy

A. Tax rebates

B. Safe investment avenue

C. Protection against the loss of economic value of an individual’s productive abilities

D. Wealth accumulation

A. An individual who needs money at the end of insurance term

B. An individual who needs insurance and has a high budget

C. An individual who needs insurance but has a low budget

D. An individual who needs an insurance product that gives high returns

A. Death benefit amount decreases with the term of coverage

B. Premium amount decreases with the term of coverage

C. Premium remains level throughout the term

D. Mortgage redemption plans are an example of decreasing term assurance plans

A. It has a death benefit component only

B. It has a survival benefit component only

C. It has both a death benefit as well as a survival component

D. It is similar to a term plan

A. Mortgage Redemption Plan

B. Credit Life Insurance Plan

C. Money Back Plan

D. Whole Life Plan

A. Postponing allocation of resources until the time is right

B. Allocation of resources over time

C. Temporary allocation of resources

D. Diversification of resource allocation

A. Yields on these policies is high

B. Clear and visible method of arriving at surrender value

C. Well defined cash and savings value component

D. Rate of return is not easy to ascertain

A. Value of the units is determined by a formula fixed in advance

B. Investment risk is borne by the insurer

C. ULIP’s are opaque with regards to their term, expenses and savings components

D. ULIP’s are bundled products