Question

What is the importance of considering the health status and cover of siblings and parents while insuring the life of a child?

a.

To increase the sum assured for the child

b.

To minimise moral hazard

c.

To reduce the premium amount

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (b).To minimise moral hazard Explanation:The importance of considering the health status and cover of siblings and parents while insuring the life of a child is to minimize moral hazard. This means that insurers need to assess the risks associated with insuring the child, taking into account the health status and insurance coverage of the parents and siblings, to ensure that the insurance policy is not being taken out purely for financial gain and that it is providing real protection for the child's future.

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Q. What is the importance of considering the health status and cover of siblings and parents while insuring the life of a child?
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