Question

Why is understanding Human Life Value (HLV) important for a life insurance agent?

a.

To calculate the taxes due on life insurance policies.

b.

To determine the cost of a life insurance policy.

c.

To estimate the potential economic loss for a family if the insured person dies prematurely.

d.

To set the premiums for life insurance policies.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).To estimate the potential economic loss for a family if the insured person dies prematurely. Explanation:Understanding HLV is important for a life insurance agent because it helps estimate the potential economic loss a family would suffer if the insured person were to die prematurely. This information is crucial for recommending the right amount of life insurance coverage to the customer.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why is understanding Human Life Value (HLV) important for a life insurance agent?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does HLV stand for in the context of life insurance?

View solution

Q. How does life insurance differ from general insurance?

View solution

Q. Why are level premiums necessary in life insurance?

View solution

Q. What is the primary difference in risk between general insurance and life insurance?

View solution

Q. Why do insurance companies use level premiums for life insurance policies?

View solution

Q. How does the concept of level premiums apply to general insurance policies?

View solution

Q. What role does the Principle of Pooling play in life insurance?

View solution

Q. What is the purpose of the life insurance policy document?

View solution

Q. Why is life insurance often compared to financial products?

View solution

Q. What is one of the advantages of cash value life insurance contracts?

View solution

Q. What is one of the disadvantages of cash value life insurance contracts?

View solution

Q. The principle of risk pooling in life insurance primarily serves to:Which document serves as evidence of the life insurance contract and contains all the terms and conditions of the insurance?

View solution

Q. The principle of risk pooling in life insurance primarily serves to:

View solution

Q. What does the sum assured in a life insurance policy imply?

View solution

Q. What is one of the advantages of life insurance as a financial product?

View solution

Q. What is one of the disadvantages of life insurance as a financial product?

View solution

Q. In financial terms, what is an asset?

View solution

Q. What does the Human Life Value (HLV) concept measure?

View solution

Q. What is a characteristic of a level premium in a life insurance policy?

View solution

Q. How can mutuality help reduce risk in financial markets?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....