Question

What is a "Without-Profit policy" in life insurance?

a.

A policy where the premiums are invested in non-risky assets for stable returns

b.

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

c.

A policy where no bonuses are paid to the policyholders, and premiums are not invested in company profits

d.

A policy where the premiums are paid in a lump sum at the beginning of the policy term

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).A policy where no bonuses are paid to the policyholders, and premiums are not invested in company profits Explanation:A "Without-Profit policy" is a non-participating life insurance policy where the policyholder does not receive a share of the company's profits or surplus, and no bonuses are paid. These policies typically include term insurance or health insurance policies.

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