Question

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

a.

Spread throughout the policy term in ULIPs

b.

Deducted from the initial premiums in ULIPs

c.

Covered by the insurance company in ULIPs

d.

Not applicable to ULIPs

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Deducted from the initial premiums in ULIPs Explanation:Initial costs are deducted from the initial premiums in ULIPs, reducing the amount allocated for investment.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is the primary determinant of benefits under Unit Linked Insurance policies?

View solution

Q. Which type of fund primarily invests in equity and equity-related instruments?

View solution

Q. What do Unit Linked policies allow policyholders to choose between?

View solution

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

View solution

Q. What does the Net Asset Value (NAV) in Unit Linked Insurance reflect?

View solution

Q. How is the value of units in Unit Linked Insurance typically defined?

View solution

Q. Which fund primarily invests in equity and equity-related instruments?

View solution

Q. In Unit Linked Insurance, what can policyholders choose between?

View solution

Q. How do Unit Linked policies differ from traditional insurance policies in terms of policyholder benefits?

View solution

Q. What does the Net Asset Value (NAV) formula represent in Unit Linked Insurance?

View solution

Q. How is the value of units typically defined in Unit Linked Insurance?

View solution

Q. How have Unit Linked policies been positioned in many markets?

View solution

Q. How do Unit Linked contracts differ from traditional savings policies?

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!

Marketing and Marketing Management

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

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Basic Chemical Engineering

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

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....