Question

How should charges be structured in linked insurance products during the lock-in period?

a.

Charges should increase substantially each year

b.

Charges should remain constant throughout the lock-in period

c.

Charges should be spread evenly during the first five years of the policy contract

d.

Charges should only be applied after the lock-in period ends

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Charges should be spread evenly during the first five years of the policy contract Explanation:Charges in linked insurance products during the lock-in period should be spread evenly during the first five years of the policy contract, without wide fluctuations, according to the regulations.

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Q. How should charges be structured in linked insurance products during the lock-in period?
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