Types of Insurance Products Individual MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Types of Insurance Products Individual, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Types of Insurance Products Individual 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 Types of Insurance Products Individual mcq questions that explore various aspects of Types of Insurance Products Individual problems. Each MCQ is crafted to challenge your understanding of Types of Insurance Products Individual principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 92 Actuarial Aspects of Product Development tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Types of Insurance Products Individual MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Types of Insurance Products Individual. 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 Types of Insurance Products Individual knowledge to the test? Let's get started with our carefully curated MCQs!

Types of Insurance Products Individual MCQs | Page 4 of 17

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q31.
Are policy loans typically available in Whole life insurance contracts?

a.

Yes, policy loans may be available until the insured's death

b.

No, policy loans are not available

c.

Policy loans are only available after the insured's death

d.

Policy loans are available only during the accumulation phase

Discuss
Answer: (a).Yes, policy loans may be available until the insured's death Explanation:Policy loans may be available in Whole life insurance contracts until the insured's death.
Q32.
What happens if there are any unpaid loans upon the insured's death in a Whole life insurance contract?

a.

The insurer cancels the policy

b.

The insurer pays the loan amount to the beneficiary

c.

The insurer subtracts the loan amount from the death benefit and pays the remainder to the beneficiary

d.

The insurer increases the premium amount to cover the loan

Discuss
Answer: (c).The insurer subtracts the loan amount from the death benefit and pays the remainder to the beneficiary Explanation:In a Whole life insurance contract, if there are any unpaid loans upon the insured's death, the insurer subtracts the loan amount from the death benefit and pays the remainder to the beneficiary.
Q33.
What is the primary purpose of Whole life insurance contracts?

a.

To provide only death benefits

b.

To meet the mortgages

c.

To satisfy both the protection and investment needs of the policyholder

d.

To offer increasing insurance cover periodically

Discuss
Answer: (c).To satisfy both the protection and investment needs of the policyholder Explanation:The primary purpose of Whole life insurance contracts is to satisfy both the protection and investment needs of the policyholder.
Q34.
What modification can be made to Whole life insurance contracts to meet the insurance needs of the policyholder?

a.

Increasing term insurance

b.

Decreasing term insurance

c.

Both increasing and decreasing term insurance

d.

Mortgage insurance

Discuss
Answer: (a).Increasing term insurance Explanation:Whole life insurance contracts can be modified with increasing term insurance to meet the insurance needs of the policyholder.
Q35.
What type of insurance contract is an Endowment insurance?

a.

Only provides death benefits

b.

Only provides investment returns

c.

Provides benefits on death or survival to the end of the term

d.

Provides benefits only on survival to the end of the term

Discuss
Answer: (c).Provides benefits on death or survival to the end of the term Explanation:An Endowment insurance provides benefits either on the policyholder's death during the term of the contract or on survival to the end of the term.
Q36.
What is one common use of Endowment insurances?

a.

Providing benefits only upon death

b.

Transferring wealth from parents to children

c.

Accumulating wealth for a single premium

d.

Paying off mortgages during the accumulation phase

Discuss
Answer: (b).Transferring wealth from parents to children Explanation:Endowment insurances are often used as a means of transferring wealth from parents to children.
Q37.
How are Endowment insurances useful for saving money for retirement?

a.

By providing increasing term insurance coverage

b.

By offering decreasing term insurance coverage

c.

By providing a lump sum payment at maturity

d.

By providing monthly annuity payments

Discuss
Answer: (c).By providing a lump sum payment at maturity Explanation:Endowment insurances are useful for saving money for retirement by providing a lump sum payment at maturity.
Q38.
In what scenario might an Endowment insurance be used for repaying a loan?

a.

When the borrower pays off the loan principal gradually

b.

When the borrower takes out an interest-only loan

c.

When the borrower receives a lump sum payment at maturity

d.

When the borrower chooses a decreasing term insurance coverage

Discuss
Answer: (b).When the borrower takes out an interest-only loan Explanation:An Endowment insurance might be used for repaying a loan when the borrower takes out an interest-only loan.
Q39.
What is a characteristic of Pure endowments?

a.

They provide a death benefit only

b.

They provide a sum assured at the end of the fixed term if the policyholder is alive

c.

They offer survival benefits at fixed dates during the contract period

d.

They are commonly issued on a participative basis

Discuss
Answer: (b).They provide a sum assured at the end of the fixed term if the policyholder is alive Explanation:Pure endowments provide a sum assured at the end of the fixed term if the policyholder is alive.
Q40.
What distinguishes Money back insurance from other types of endowment policies?

a.

It offers a death benefit only

b.

It provides a lump sum payment at maturity

c.

It offers survival benefits at fixed dates during the contract period

d.

It is commonly issued as a unit linked contract

Discuss
Answer: (c).It offers survival benefits at fixed dates during the contract period Explanation:Money back insurance offers survival benefits at fixed dates during the contract period, in addition to the death benefit.
Page 4 of 17