Question

What is the purpose of the conversion option in a deferred pension plan?

a.

To change the ownership of the policy

b.

To alter the nominee of the policy

c.

To convert the lump sum into an annuity or vice versa

d.

To increase the sum assured

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To convert the lump sum into an annuity or vice versa Explanation:The conversion option in a deferred pension plan allows policyholders to convert the lump sum into an annuity or vice versa, providing flexibility in retirement planning.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of the conversion option in a deferred pension plan?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What type of alteration typically incurs charges from the insurer?

View solution

Q. What does the term "Guaranteed Surrender Value" refer to in life insurance contracts?

View solution

Q. Which of the following is generally known as the "statutory surrender value" in life insurance policies?

View solution

Q. What are "Guaranteed Additions" in life insurance contracts?

View solution

Q. Which of the following is NOT typically offered as a guarantee in life insurance contracts?

View solution

Q. What is the purpose of "Guaranteed Additions" in life insurance contracts?

View solution

Q. What does the term "Guaranteed Maturity Benefit" refer to in insurance contracts?

View solution

Q. What are 'With profit contracts' in insurance?

View solution

Q. What is the purpose of with-profit contracts offering bonuses or dividends?

View solution

Q. How are bonuses usually expressed in 'with profit contracts'?

View solution

Q. What happens once a bonus is declared by an insurer in a with-profit contract?

View solution

Q. What is the purpose of smoothing in with-profit policies?

View solution

Q. What is a reversionary bonus in with-profit policies?

View solution

Q. When is the terminal bonus payable in with-profit policies?

View solution

Q. How does an insurance company decide the mix of bonuses to pay in with-profit policies?

View solution

Q. What is the purpose of offering low annual bonuses and a high terminal bonus in some with-profit policies?

View solution

Q. What is the primary purpose of offering profits, bonuses, or dividends in insurance contracts?

View solution

Q. What is the main difference between participating and non-participating insurance policies?

View solution

Q. What are 'bonuses' or 'dividends' in insurance contracts?

View solution

Q. Which statement about bonuses in insurance contracts is true?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

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!

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Sociology

Gain insights into human behavior and society with our Sociology category. Explore...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...