Question

How are the investment risks in ULIPs different from traditional insurance plans?

a.

They are lower in ULIPs than in traditional plans

b.

They are borne by the insurance company in ULIPs and by the policyholder in traditional plans

c.

They are not applicable in traditional plans

d.

They are borne by the government in ULIPs and by the policyholder in traditional plans

Answer: (b).They are borne by the insurance company in ULIPs and by the policyholder in traditional plans Explanation:In ULIPs, the investment risks are borne by the policyholder / investor, whereas in traditional insurance plans, these risks are typically borne by the insurance company.

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Q. How are the investment risks in ULIPs different from traditional insurance plans?

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