Question

How is the sum insured determined for PA policies based on income?

a.

It is a fixed amount for all policyholders

b.

It is based on a percentage of the policyholder's income

c.

It is based on the age of the policyholder

d.

It is determined by the policyholder's occupation

Posted under IC38 Life Insurance Agent Exam

Answer: (b).It is based on a percentage of the policyholder's income Explanation:The sum insured for PA policies is usually decided based on a multiple of the policyholder's gross monthly income, typically around 60 times the income.

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Q. How is the sum insured determined for PA policies based on income?
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