Question

What is the primary characteristic of decreasing term assurance?

a.

Premium generally increases as the amount of coverage increases.

b.

The death benefit decreases as the policy term progresses.

c.

It provides a lump-sum amount upon policy maturity.

d.

It offers a return of premiums paid at the end of the policy term.

Posted under IC38 Life Insurance Agent Exam

Answer: (b).The death benefit decreases as the policy term progresses. Explanation:Decreasing term assurance provides a death benefit that decreases as the policy term progresses, typically to match the balance due on a loan.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What is the primary goal of introducing "Saral Pension" by IRDAI?

View solution

Q. How many annuity options are offered by the "Saral Pension" product?

View solution

Q. What is the mode of annuity payment available for "Saral Pension"?

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!

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Bioinformatics

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

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Mechanical Engineering

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

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...