Question

What should an advertisement for Unit Linked Life Insurance products explicitly state regarding premiums and investment risks?

a.

Premiums are guaranteed against any investment risks

b.

The premium paid is not subject to any investment risks

c.

Premiums are not subject to investment risks associated with capital markets

d.

The premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions.

Answer: (d).The premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions. Explanation:The advertisement should explicitly state that the premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What should an advertisement for Unit Linked Life Insurance products explicitly state regarding premiums and investment risks?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the essential ingredient of a life insurance product, according to the guidelines for product design?

Q. What does the human life value element determine in the context of life insurance coverage?

Q. How is the minimum sum assured linked to the term of the life policy and the age of the life assured?

Q. What determines the policy term in the case of whole life plans according to the guidelines?

Q. What is the purpose of ensuring a defined quantum of the sum assured in the case of single premium policies, according to the guidelines?

Q. How is the sum assured related to the premium in unit-linked insurance plans, as per the guidelines?

Q. What is the formula for calculating the minimum mortality cover in unit-linked products, as per the guidelines?

Q. In the case of Whole Life Products, how is T (Policy Term) determined in the formula for calculating the minimum mortality cover?

Q. What is the minimum annual health cover for Regular Premium (RP) contracts for individuals below 45 years of age?

Q. What is the minimum annual health cover for Regular Premium (RP) contracts for individuals aged 45 years and above?

Q. What must top-up premiums paid during the contract have, according to the guidelines?

Q. When can the sum assured payable on death be reduced during the term of the policy, according to the guidelines?

Q. What settlement options may be allowed after the expiry of the policy term, according to the guidelines?

Q. What is the treatment of additional payments in regular premium/limited premium ULIPs, according to the guidelines?

Q. What is the minimum policy term mandated by the IRDA Guidelines for every ULIP?

Q. How long is the lock-in period for ULIP plans according to the guidelines?

Q. In which countries are the returns of a unit-linked policy tax-free if the policy duration is for at least a certain number of years?

Q. What is meant by the minimum term period of a life insurance policy?

Q. What is the purpose of guarantees on policy benefits in unit-linked plans?

Q. How are policyholders charged for guaranteed benefits in unit-linked plans?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 14 Regulations of Insurance Business? 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!