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.

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Types of Insurance Products Individual MCQs | Page 6 of 17

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Q51.
What is Deferred Whole Life Assurance?

a.

A contract where death benefit is payable immediately upon the insured's death

b.

A contract where death benefit is payable after a specified number of years in the contract

c.

A contract where premiums are paid only during the insured's lifetime

d.

A contract where the policyholder can choose to defer premium payments

Discuss
Answer: (b).A contract where death benefit is payable after a specified number of years in the contract Explanation:Deferred whole life assurance is a contract where the death benefit (sum assured) is payable if death occurs after some specified years in the contract.
Q52.
What distinguishes Temporary Term Assurance from other types of term assurance?

a.

It offers a higher sum assured

b.

It has a shorter policy term of 24 months or less

c.

It provides coverage for critical illnesses

d.

It includes a return of premiums paid on the date of maturity

Discuss
Answer: (b).It has a shorter policy term of 24 months or less Explanation:Temporary Term Assurance is characterized by a shorter policy term of 24 months or less, making it distinct from other types of term assurance.
Q53.
What is the unique feature of Term Assurance with Return of Premium?

a.

It provides coverage for a specified period after the insured's death

b.

It offers increasing death benefits over time

c.

It returns premiums paid on the date of maturity

d.

It allows policyholders to defer premium payments

Discuss
Answer: (c).It returns premiums paid on the date of maturity Explanation:Term Assurance with Return of Premium is unique in that it not only provides benefit payment on death during a specified policy term but also returns premiums paid (with or without interest) on the date of maturity.
Q54.
What is the characteristic of Decreasing Term Assurance?

a.

The premiums decrease over time

b.

The death benefit decreases over time

c.

The policy term increases over time

d.

The premiums are payable until the insured's death

Discuss
Answer: (b).The death benefit decreases over time Explanation:Decreasing Term Assurance is characterized by a decreasing death benefit over time, usually in a specified order according to the year of death.
Q55.
What is the primary purpose of Pure Term Assurance?

a.

To provide coverage for critical illnesses

b.

To return premiums paid upon the insured's death

c.

To offer increasing death benefits over time

d.

To provide benefit payment on death only during a specified policy term

Discuss
Answer: (d).To provide benefit payment on death only during a specified policy term Explanation:Pure Term Assurance is designed to provide benefit payment on death only during a specified policy term, without any additional features such as returning premiums or coverage for critical illnesses.
Q56.
What is the distinguishing feature of Increasing Term Assurance?

a.

It offers increasing premiums over time

b.

The death benefit increases in a specified order according to the year of death

c.

It provides coverage for critical illnesses

d.

It includes a return of premiums paid on the date of maturity

Discuss
Answer: (b).The death benefit increases in a specified order according to the year of death Explanation:Increasing Term Assurance is characterized by a death benefit that increases in a specified order according to the year of death.
Q57.
What is the primary benefit of Whole Life Assurance?

a.

It provides survival benefits on stipulated dates

b.

It offers increasing death benefits over time

c.

The death benefit is payable only on the date of maturity

d.

Benefit payment is made on death only

Discuss
Answer: (d).Benefit payment is made on death only Explanation:Whole Life Assurance primarily provides benefit payment on death only, with no survival benefits or maturity date.
Q58.
What distinguishes Double Endowment from Endowment Assurance?

a.

It offers double the amount of death benefit compared to Endowment Assurance

b.

It provides double the premium payment options

c.

It includes survival benefits on the date of maturity

d.

The death benefit is payable only on survival, not on death

Discuss
Answer: (a).It offers double the amount of death benefit compared to Endowment Assurance Explanation:Double Endowment offers a death benefit of 2X during the specified policy term, compared to Endowment Assurance.
Q59.
What is the primary characteristic of Pure Endowment?

a.

It provides benefit payment on death only

b.

It offers increasing death benefits over time

c.

Benefit payment is made on survival only on the date of maturity

d.

It includes survival benefits on stipulated dates

Discuss
Answer: (c).Benefit payment is made on survival only on the date of maturity Explanation:Pure Endowment primarily provides benefit payment on survival only on the date of maturity, with no death benefit.
Q60.
Which type of assurance provides benefit payment on death during the specified policy term and on survival at the date of maturity?

a.

Whole Life Assurance

b.

Endowment Assurance

c.

Anticipated Whole Life Assurance

d.

Increasing Term Assurance

Discuss
Answer: (b).Endowment Assurance Explanation:Endowment Assurance provides benefit payment on death, if any, during the specified policy term, and on survival - on the date of maturity.
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