Question

Why is the imposition of a lock-in period relevant for top-up premiums in Unit Linked Policies?

a.

To encourage policy surrender

b.

To discourage policyholders from making additional contributions

c.

To regulate the flow of top-ups and maintain financial underwriting norms

d.

To increase the earning capacity of policyholders

Answer: (c).To regulate the flow of top-ups and maintain financial underwriting norms Explanation:The imposition of a lock-in period for top-up premiums in Unit Linked Policies is relevant to regulate the flow of top-ups and maintain financial underwriting norms.

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Q. Why is the imposition of a lock-in period relevant for top-up premiums in Unit Linked Policies?

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