Question

What is the main benefit of Term Life insurance as an income replacement plan?

a.

It provides a lump-sum amount to beneficiaries.

b.

It offers higher returns on investment.

c.

It replaces a lump-sum amount with periodic payments.

d.

It has a cash value that grows over time.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It replaces a lump-sum amount with periodic payments. Explanation:Term Life insurance as an income replacement plan replaces a lump-sum amount with periodic payments to the dependent beneficiaries, helping to replace the insured individual's income.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the main benefit of Term Life insurance as an income replacement plan?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the primary advantage of convertible term insurance policies?

View solution

Q. What is the unique selling proposition (USP) of term assurance?

View solution

Q. What is the primary characteristic of decreasing term assurance?

View solution

Q. In which scenario is term insurance typically relevant?

View solution

Q. What is a limitation of term insurance plans?

View solution

Q. How do whole life insurance premiums compare to term premiums?

View solution

Q. What is one way to use the cash value of a whole life insurance policy?

View solution

Q. What is the primary purpose of endowment assurance?

View solution

Q. What is a Money Back policy's primary characteristic?

View solution

Q. What makes Money Back plans attractive for policyholders?

View solution

Q. What is the key difference between Participating (Par) and Non-Participating (Non-Par) life insurance products?

View solution

Q. What is the main characteristic of Non-participating (Non-Par) products?

View solution

Q. What is the minimum death cover required for all non-linked individual life insurance products according to IRDAI regulations?

View solution

Q. What are the two variants of life insurance products concerning death benefits?

View solution

Q. What is the key characteristic of a "defined benefit plan" in the context of pension plans?

View solution

Q. What does an occupational or employer pension refer to?

View solution

Q. What is the primary purpose of an annuity in the context of retirement planning?

View solution

Q. How is a pension typically provided to individuals upon retirement?

View solution

Q. What is the "vesting date" in the context of pension plans?

View solution

Q. What is an "immediate annuity" in the context of pension plans?

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!

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...