Question

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

a.

Initial costs are higher in Unit Linked Insurance

b.

Initial costs are higher in traditional policies

c.

Initial costs are equally distributed in both types

d.

Initial costs do not impact the policy pricing

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Initial costs are higher in traditional policies Explanation:In traditional policies, initial costs are spread throughout the policy term, making them higher, while in Unit Linked Insurance, these costs are deducted from the initial premiums.

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