Question

How does the type of product influence withdrawal rates?

a.

Term insurance plans are expected to have higher withdrawal rates due to low awareness

b.

Introduction of competitive term insurance plans is expected to decrease withdrawal rates

c.

Unit linked products typically have higher withdrawal rates in the initial years

d.

Conventional products have lower withdrawal rates compared to unit linked products

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Unit linked products typically have higher withdrawal rates in the initial years Explanation:Unit linked products typically have higher withdrawal rates in the initial years compared to conventional products, as they are often purchased by financially knowledgeable individuals.

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Q. How does the type of product influence withdrawal rates?
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