Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Mutual Fund,Venture Capital,Life Insurance Policies and AIFS knowledge to the test? Let's get started with our carefully curated MCQs!

Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 12 of 18

Discover more Topics under IC 89 Management Accounting

Discuss
Answer: (d).To provide a living benefit and protect against premature death. Explanation:An endowment life insurance policy is designed primarily to provide a living benefit and secondarily to provide life insurance protection.
Discuss
Answer: (c).Endowment policies pay the sum assured back to the policyholder. Explanation:A major benefit of an endowment policy over a whole life one is that at the end of the specified term, the sum assured is paid back to the policyholder along with all bonuses/dividends accumulated during the term of the policy.
Discuss
Answer: (b).Premiums for endowment policies are much higher. Explanation:The premium for an endowment life policy is much higher than that for a whole life policy.
Discuss
Answer: (c).It pays double the amount on survival compared to death. Explanation:A Double Endowment Policy is a Term Insurance plan with a pure endowment plan of double the value, where the amount payable on survival is double the amount payable on death.
Discuss
Answer: (b).It pays a percentage of the sum assured on survival at specified intervals. Explanation:A Money Back Policy or Anticipated Endowment Policy pays 20% of the sum assured on survival of 5 years, 40% on survival of 20 years, and the full sum assured on death within 20 years.
Discuss
Answer: (c).They provide fixed returns based on factors like interest rate movements. Explanation:Endowment Plans With Fixed Guaranteed Returns offer fixed returns that vary from insurer to insurer based on factors such as interest rate movements, asset allocation, and reinvestment risks.
Discuss
Answer: (c).Annual bonuses are added based on investment performance. Explanation:Under Traditional With Profits Endowments, the sum assured guaranteed to be paid is increased based on investment performance through the addition of annual bonuses.
Discuss
Answer: (b).Premiums are invested in units of an insurance fund. Explanation:Unit-linked endowment plans are investments where the premium is invested in units of an insurance fund.
Discuss
Answer: (b).The basic sum assured is equal to the death benefit at the start of the policy. Explanation:A Full Endowment Plan is a with-profits endowment where the basic sum assured is equal to the death benefit at the start of the policy.
Discuss
Answer: (d).The face value is payable only if the insured survives to the end of the stated endowment period. Explanation:A Pure Endowment policy is a life insurance policy where the face value is payable only if the insured survives to the end of the stated endowment period; no benefit is paid if the insured dies during the endowment period.