Question

Why do policyholder benefits in Unit Linked Insurance not depend on the assumptions of the life insurance company?

a.

Because benefits are determined by the investor's choices

b.

Because benefits are tied to market value

c.

Because benefits are fixed and cannot change

d.

Because benefits are linked to the life insurance company's assumptions

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Because benefits are tied to market value Explanation:Policyholder benefits in Unit Linked Insurance are tied to the market value of the fund's assets, not the assumptions of the life insurance company.

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Q. Why do policyholder benefits in Unit Linked Insurance not depend on the assumptions of the life insurance company?
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