Question

How is the surrender value calculated for life insurance policies?

a.

It is a fixed amount mentioned in the policy document

b.

It depends solely on the type of insurance plan

c.

It is based on a formula that considers several factors

d.

It is determined by the age of the policyholder

Answer: (c).It is based on a formula that considers several factors Explanation:The surrender value is calculated based on a formula that considers factors such as the type and plan of insurance, age of the policyholder, and the length of the premium-paying period.

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Q. How is the surrender value calculated for life insurance policies?

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Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the "Guaranteed Surrender Value" (GSV) in the context of life insurance policies?

Q. Why may the actual surrender value differ from the value mentioned in the policy?

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Q. What is the primary purpose of policy loans in life insurance?

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Q. What does the process of nomination in life insurance involve?

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Q. When can a policyholder make changes to the nomination for a life insurance policy?

Q. What right does a nominee have in a life insurance claim?

Q. According to Section 39(7) of the Insurance Act, 1938, who becomes beneficially entitled to the claim amount for policies maturing after 26th December 2014?

Q. In the case where the nominee is a minor, what additional step must the policyholder take?

Q. What happens to the status of appointees when the nominee reaches the majority age?

Q. If no appointee is designated, and the nominee is a minor, who receives the death claim proceeds on the death of the life assured?

Q. How is the death claim payable when more than one nominee is appointed?

Q. How are nominations made after the commencement of the policy made effective?

Q. According to Section 39(11) of the Insurance Act, who is entitled to the proceeds and benefits of a policy if the policyholder dies after the policy matures but before the proceeds are received?

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