Question

What is a "With-Profit policy" in life insurance?

a.

A policy where the policyholder receives a share of the company's profits in the form of bonuses

b.

A policy where the premiums are invested in risky assets for potentially higher returns

c.

A policy where the premiums are guaranteed to be returned with interest at maturity

d.

A policy where the premiums are lower compared to non-participating policies

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).A policy where the policyholder receives a share of the company's profits in the form of bonuses Explanation:A "With-Profit policy" is a life insurance policy where the policyholder participates in the profits of the insurance company, receiving bonuses based on the company's performance.

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