Question

What characterizes the one-year renewable term life assurance (OYRGTA) typically used in group insurance schemes?

a.

It requires evidence of insurability every year upon renewal.

b.

It offers a fixed benefit to nominees upon the employee's death, with few exclusions.

c.

Premiums decrease as the group members age.

d.

It provides long-term savings and investment returns to the employee.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).It offers a fixed benefit to nominees upon the employee's death, with few exclusions. Explanation:One-year renewable term life assurance (OYRGTA) in group insurance schemes is characterized by offering a fixed benefit to the nominees upon the death of the employee, with very few exclusions (e.g., suicide in the first year of coverage). This type of insurance automatically renews at the end of each coverage year without requiring employees to provide evidence of insurability, although premiums may be revised based on the group's overall risk profile. It's focused on providing death benefits rather than savings or investment returns.

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Q. What characterizes the one-year renewable term life assurance (OYRGTA) typically used in group insurance schemes?
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