Question

What does the lock-in period refer to?

a.

The period during which premiums cannot be paid

b.

The period during which the policy cannot be revived

c.

The period during which policy proceeds cannot be paid except in certain circumstances

d.

The period during which policyholders can withdraw funds freely

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The period during which policy proceeds cannot be paid except in certain circumstances Explanation:The lock-in period refers to the period of five consecutive years from the date of commencement of the policy, during which the proceeds of the discontinued policies cannot be paid by the insurer to the policyholder or insured, except in certain circumstances such as death or other contingencies covered under the policy.

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Q. What does the lock-in period refer to?
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