Question

What is the primary difference between rebates for sum assured and rebates for the mode of premium in life insurance?

a.

Sum assured rebates are offered for policies with a specific duration, while mode of premium rebates are not.

b.

Sum assured rebates are offered to encourage regular premium payments, while mode of premium rebates are not.

c.

Sum assured rebates are based on the chosen sum assured amount, while mode of premium rebates are based on the policy duration.

d.

Sum assured rebates are based on the sum assured amount, while mode of premium rebates are based on the frequency of premium payments.

Posted under IC38 Life Insurance Agent Exam

Answer: (d).Sum assured rebates are based on the sum assured amount, while mode of premium rebates are based on the frequency of premium payments. Explanation:The primary difference is that sum assured rebates are based on the chosen sum assured amount, while mode of premium rebates are based on the frequency of premium payments.

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Q. What is the primary difference between rebates for sum assured and rebates for the mode of premium in life insurance?
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