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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How does Unit Linked Insurance ensure a transparent structure?

View solution

Q. What is the key difference in the pricing of initial costs between traditional policies and Unit Linked Insurance?

View solution

Q. What is the key difference in the pricing of initial costs between traditional policies and Unit Linked Insurance?How is the death benefit calculated in Unit Linked Insurance?

View solution

Q. Who bears the investment risk in Unit Linked Insurance?

View solution

Q. What is the primary factor that determines the benefits under ULIP policies?

View solution

Q. What is the key advantage of the transparent structure of ULIPs?

View solution

Q. How are initial costs managed in ULIPs compared to traditional policies?

View solution

Q. How is the death benefit calculated in ULIP policies?

View solution

Q. Who bears the investment risk in ULIPs?

View solution

Q. What was a critical concern with traditional life insurance policies?

View solution

Q. Which of the following trends contributed to the rise of non-traditional life insurance products?

View solution

Q. What characterizes Universal Life Insurance?

View solution

Q. In which markets did ULIPs become one of the most popular and significant products?

View solution

Q. How do ULIPs allow policyholders to benefit from a Life Insurer's investment performance?

View solution

Q. Which of the following statements is/ are incorrect?

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!

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Renewable Energy

Explore the sustainable future of energy with our Renewable Energy category. Dive...

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Dairy Engineering

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

Mass Transfer

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

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

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...

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...