L03 Life Insurance Products Traditional MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on L03 Life Insurance Products Traditional, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our L03 Life Insurance Products Traditional 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 L03 Life Insurance Products Traditional mcq questions that explore various aspects of L03 Life Insurance Products Traditional problems. Each MCQ is crafted to challenge your understanding of L03 Life Insurance Products Traditional principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our L03 Life Insurance Products Traditional MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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L03 Life Insurance Products Traditional MCQs | Page 2 of 6

Discover more Topics under IC38 Life Insurance Agent Exam

Q11.
What is the concept of "product suitability" introduced by IRDAI?

a.

It is the suitability of a product for any prospect.

b.

It is a measure of a product's profitability.

c.

It involves choosing the cheapest insurance product.

d.

It determines the product's compliance with government regulations.

Discuss
Answer: (a).It is the suitability of a product for any prospect. Explanation:"Product suitability" involves assessing whether a product is suitable for a prospect based on various factors.
Q12.
What information is included in "suitability information" for insurance prospects?

a.

Only age and income

b.

Age, income, and investment objectives

c.

Age, family status, and insurance portfolio

d.

Age, income, family status, life stage, financial goals, and more

Discuss
Answer: (d).Age, income, family status, life stage, financial goals, and more Explanation:There are various factors included in "suitability information," such as age, income, family status, and more.
Q13.
What are riders in life insurance products typically used for?

a.

To reduce the overall cost of the insurance policy

b.

To simplify the insurance contract

c.

To provide supplementary benefits to the policy

d.

To act as the primary insurance policy

Discuss
Answer: (c).To provide supplementary benefits to the policy Explanation:Riders are commonly used to provide supplementary benefits like increasing the amount of death benefit or adding disability cover to a policy.
Q14.
Which among the following is an intangible product?

a.

Car

b.

House

c.

Life insurance

d.

Soap

Discuss
Answer: (c).Life insurance Explanation:An intangible product is one that cannot be perceived directly, and life insurance is specifically described as an example of an intangible product. In contrast, a car, house, and soap are tangible products that can be directly seen or felt.
Q15.
Which type of insurance provides a series of periodical payments to the dependent beneficiaries instead of a lump sum amount?

a.

Term insurance

b.

Whole life insurance

c.

Endowment insurance

d.

Universal life insurance

Discuss
Answer: (a).Term insurance Explanation:A Term Life insurance plan serves as an income replacement plan where the payment of a lump-sum amount is replaced by a series of monthly, quarterly, or similar periodical payments to the dependent beneficiaries in the event of the insured's death. This characteristic distinguishes it from other types of life insurance such as whole life, endowment, or universal life insurance, which typically provide a lump sum payment.
Q16.
What is the primary purpose of a Term Life insurance plan?

a.

To provide a savings component

b.

To offer cash value that grows over time

c.

To replace an insured individual's income in case of death

d.

To provide disability coverage

Discuss
Answer: (c).To replace an insured individual's income in case of death Explanation:The primary purpose of a Term Life insurance plan is to replace an insured individual's income in case of their death, providing a lump-sum amount or series of periodical payments to the dependent beneficiaries.
Q17.
In October 2020, IRDAI introduced a Standard Individual Term Life Insurance Product called "Saral Jeevan Bima." What are the key features of this product?

a.

Multiple variants and options to choose from

b.

No exclusions except for the suicide exclusion

c.

Riders and additional benefits specified by the insurer

d.

Restricted to certain gender and educational qualifications

Discuss
Answer: (b).No exclusions except for the suicide exclusion Explanation:"Saral Jeevan Bima" introduced by IRDAI is a non-linked non-participating individual pure risk premium life insurance plan. It has no exclusions except for the suicide exclusion.
Q18.
What additional benefit can be included in a Term insurance policy through a rider?

a.

Premium waiver in case of disability

b.

Monthly income for the policyholder's lifetime

c.

Extended coverage beyond the policy term

d.

Increased sum assured in case of death

Discuss
Answer: (a).Premium waiver in case of disability Explanation:A rider in a Term insurance policy can provide a premium waiver in case of disability, ensuring that the policy remains in force even if the insured becomes disabled.
Q19.
When is term insurance typically provided as a stand-alone policy?

a.

Only when the insured is older than 70 years

b.

When it is bundled with other insurance products

c.

As part of a pension plan

d.

In standalone term insurance policies

Discuss
Answer: (d).In standalone term insurance policies Explanation:Term insurance is typically provided as a stand-alone policy, separate from other insurance products or plans.
Q20.
What is the main benefit of Term Life insurance as an income replacement plan?

a.

It provides a lump-sum amount to beneficiaries.

b.

It offers higher returns on investment.

c.

It replaces a lump-sum amount with periodic payments.

d.

It has a cash value that grows over time.

Discuss
Answer: (c).It replaces a lump-sum amount with periodic payments. Explanation:Term Life insurance as an income replacement plan replaces a lump-sum amount with periodic payments to the dependent beneficiaries, helping to replace the insured individual's income.
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