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.

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Types of Insurance Products Individual MCQs | Page 5 of 17

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Q41.
What is the primary purpose of Pure endowment contracts?

a.

To provide death benefits only

b.

To provide survival benefits only

c.

To satisfy the investment need of the policyholder

d.

To offer increasing insurance cover over time

Discuss
Answer: (c).To satisfy the investment need of the policyholder Explanation:The primary purpose of Pure endowment contracts is to satisfy the investment need of the policyholder.
Q42.
What is the key feature of Double endowment insurance?

a.

It provides only death benefits

b.

It provides a survival benefit equal to twice the death benefit at maturity

c.

It offers increasing death benefits over time

d.

It offers decreasing death benefits over time

Discuss
Answer: (b).It provides a survival benefit equal to twice the death benefit at maturity Explanation:Double endowment insurance provides a survival benefit equal to twice the death benefit at maturity.
Q43.
What type of insurance provides a death benefit equal to twice the survival benefit during the contract period?

a.

Pure endowment insurance

b.

Double endowment insurance

c.

Money back insurance

d.

Double cover endowment insurance

Discuss
Answer: (d).Double cover endowment insurance Explanation:Double cover endowment insurance provides a death benefit equal to twice the survival benefit during the contract period.
Q44.
What are With-profit contracts?

a.

Contracts that offer fixed benefits without any bonuses

b.

Contracts that offer bonuses along with benefits payable on specified events or annually

c.

Contracts that offer survival benefits only

d.

Contracts that offer increasing death benefits over time

Discuss
Answer: (b).Contracts that offer bonuses along with benefits payable on specified events or annually Explanation:With-profit contracts offer bonuses along with benefits payable on specified events or annually.
Q45.
What is the key feature of Convertible term assurance?

a.

It allows the insured to renew the term assurance at the end of the original contract

b.

It allows the insured to convert the term assurance into another type of contract without medical underwriting

c.

It allows the insured to withdraw the sum assured at any time during the contract period

d.

It allows the insured to receive double the sum assured at maturity

Discuss
Answer: (b).It allows the insured to convert the term assurance into another type of contract without medical underwriting Explanation:Convertible term assurance allows the insured to convert the term assurance into another type of contract without medical underwriting.
Q46.
What is the primary purpose of Critical Illness Assurance?

a.

To provide regular income to the policyholder

b.

To cover the cost of minor medical procedures

c.

To make a lump sum cash payment upon diagnosis of critical illnesses

d.

To offer financial protection against non-critical illnesses

Discuss
Answer: (c).To make a lump sum cash payment upon diagnosis of critical illnesses Explanation:Critical Illness Assurance is primarily designed to make a lump sum cash payment upon the diagnosis of critical illnesses listed in the insurance policy.
Q47.
What is the purpose of the survival period in Critical Illness Assurance?

a.

To determine the premium amount

b.

To ensure the policyholder's survival after diagnosis

c.

To delay the payment of benefits

d.

To cover the cost of treatment procedures

Discuss
Answer: (c).To delay the payment of benefits Explanation:The survival period in Critical Illness Assurance is designed to delay the payment of benefits until the policyholder survives for a minimum number of days after the illness was first diagnosed.
Q48.
Which of the following is NOT typically covered under Critical Illness Assurance?

a.

Heart attack

b.

Cancer

c.

Common cold

d.

Kidney failure

Discuss
Answer: (c).Common cold Explanation:The common cold is not typically covered under Critical Illness Assurance. These policies usually cover serious and life-threatening illnesses such as heart attack, cancer, stroke, kidney failure, etc.
Q49.
How are alternative forms of Critical Illness Assurance different from traditional policies?

a.

They provide a higher sum assured

b.

They offer regular income instead of a lump sum payment

c.

They directly pay health providers for treatment costs

d.

They have shorter survival periods

Discuss
Answer: (c).They directly pay health providers for treatment costs Explanation:Alternative forms of Critical Illness Assurance differ from traditional policies as they directly pay health providers for the treatment costs of critical illnesses covered by the policyholder’s insurance, avoiding lengthy reimbursement processes.
Q50.
What is the benefit of Critical Illness Assurance policies paying hospitals directly?

a.

It reduces the premiums for policyholders

b.

It avoids policyholders incurring out-of-pocket expenses

c.

It increases the sum assured for policyholders

d.

It allows policyholders to choose any hospital for treatment

Discuss
Answer: (b).It avoids policyholders incurring out-of-pocket expenses Explanation:Critical Illness Assurance policies paying hospitals directly avoid policyholders incurring out-of-pocket expenses, as the payment is made directly to hospitals for treatment costs.
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