Question

What financial problems may arise for the family in the event of the death of the life assured?

a.

Funeral expenses and hospital bills

b.

Loss of regular income and loan repayment concerns

c.

Legal expenses and medical treatment costs

d.

Education expenses and marriage costs

Answer: (b).Loss of regular income and loan repayment concerns Explanation:In the event of the death of the life assured, the family may face the financial problems of funeral expenses and the cessation of regular income, leading to difficulties in meeting living expenses. Additionally, there may be outstanding loans that need to be repaid, potentially resulting in the sale of assets and further distress for the family.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What financial problems may arise for the family in the event of the death of the life assured?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What financial problem does old age pose?

Q. How do insurers address other financial needs?

Q. What does political utility refer to in the context of product utilities?

Q. Which type of utility refers to the financial power granted by a product?

Q. What defines the philosophical utility of a product?

Q. Which type of utility is decided by the sensory appeal of a product?

Q. What are some issues related to the policy document of insurance products?

Q. Where do many beneficiaries of insurance policies prefer to seek justice for disputes?

Q. What is the basis on which insurance would be granted in most countries?

Q. When is an insurance contract considered concluded?

Q. In what condition are insurance contracts considered valid if payment is made by cheque?

Q. What problem do insurers face with regards to 'unconcluded' contracts?

Q. Who can enter into a contract as a proposer for an insurance product?

Q. What is the minimum age requirement for a proposer to enter into a contract for an insurance product?

Q. Can a minor person enter into a contract as a proposer for an insurance product?

Q. Under what conditions can an illiterate person enter into a contract for an insurance product?

Q. What option is available for a person with a physical deformity preventing them from signing to enter into a contract for an insurance product?

Q. Who are the parties involved in a life insurance contract?

Q. What is the relationship between the proposer and the life assured in a life insurance contract?

Q. What does insurable interest mean in the context of a life insurance contract?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? 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!