Question

What is the significance of unit creation in Unit Linked Insurance?

a.

It determines premium amounts

b.

It reduces investment flexibility

c.

It allows for transparent pricing

d.

It divides the investment fund into equal parts

Posted under IC38 Life Insurance Agent Exam

Answer: (d).It divides the investment fund into equal parts Explanation:Units are created by dividing an investment fund into equal parts in Unit Linked Insurance.

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Q. What is the significance of unit creation in Unit Linked Insurance?
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