Question

How is dependent insurance in a group life insurance scheme typically characterized in terms of coverage levels compared to the employee?

a.

Coverage levels for dependents are typically higher than for the employee.

b.

Coverage levels for dependents are the same as for the employee.

c.

Coverage levels for dependents are typically lower than for the employee.

d.

There is no coverage available for dependents in group life insurance schemes.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Coverage levels for dependents are typically lower than for the employee. Explanation:Dependent insurance in a group life insurance scheme typically features coverage levels that are generally lower than for the employee. This type of insurance allows an employee's spouse and children to also be covered under the group scheme, providing them with a certain level of financial protection. However, due to factors such as the increased risk of anti-selection and the voluntary nature of dependent coverage, the insurance coverage levels provided to dependents are usually set lower than those available to the primary insured employee.

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Q. How is dependent insurance in a group life insurance scheme typically characterized in terms of coverage levels compared to the employee?
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