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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Q41.
What is the primary goal of introducing "Saral Pension" by IRDAI?

a.

To increase competition among insurers

b.

To create complex annuity schemes

c.

To standardize immediate annuity products

d.

To reduce the trust between insurers and the insured

Discuss
Answer: (c).To standardize immediate annuity products Explanation:The primary goal of introducing "Saral Pension" by IRDAI is to standardize immediate annuity products, making it easier for customers to make informed choices and reducing mis-selling.
Q42.
How many annuity options are offered by the "Saral Pension" product?

a.

One

b.

Two

c.

Three

d.

Four

Discuss
Answer: (b).Two Explanation:The "Saral Pension" product offers two annuity options.
Q43.
What is the mode of annuity payment available for "Saral Pension"?

a.

Only Monthly

b.

Monthly, Quarterly, Half-Yearly, and Yearly

c.

Yearly

d.

Quarterly and Yearly

Discuss
Answer: (b).Monthly, Quarterly, Half-Yearly, and Yearly Explanation:"Saral Pension" offers annuity payments in various modes, including Monthly, Quarterly, Half-Yearly, and Yearly.
Q44.
What is the primary feature of the "Life annuity with 100% Return of Purchase Price" option in "Saral Pension"?

a.

It offers annuity payments to the secondary annuitant.

b.

It returns the full purchase price on the death of the primary annuitant.

c.

It provides annuity payments only monthly.

d.

It has complex terms and conditions.

Discuss
Answer: (b).It returns the full purchase price on the death of the primary annuitant. Explanation:The primary feature of the "Life annuity with 100% Return of Purchase Price" option in "Saral Pension" is that it returns the full purchase price on the death of the primary annuitant.
Q45.
In the "Joint Life annuity" option of "Saral Pension," what happens on the death of the primary annuitant?

a.

The annuity payments stop completely.

b.

The secondary annuitant receives 100% of the annuity.

c.

The purchase price is returned to the policyholder.

d.

The mode of annuity payment changes.

Discuss
Answer: (b).The secondary annuitant receives 100% of the annuity. Explanation:In the "Joint Life annuity" option of "Saral Pension," the secondary annuitant receives 100% of the annuity on the death of the primary annuitant.
Q46.
What is the primary purpose of life insurance products?What does a life insurance policy provide to the near and dear ones of the insured?

a.

To provide investment opportunitiesInvestment opportunities

b.

To accumulate wealth quicklyPeace of mind and protection

c.

To protect against the loss of productive abilitiesAccumulated wealth

d.

To create temporary financial goalsLong-term financial goals

Discuss
Answer: (b).To protect against the loss of productive abilitiesPeace of mind and protection Explanation:The primary purpose of life insurance products is to protect against the loss of economic value of an individual's productive abilities. Life insurance provides financial protection to the insured's dependents or to the insured individual in case of unfortunate events like death or disability.A life insurance policy provides peace of mind and protection to the near and dear ones of the insured. It serves as a financial safety net for the insured's family or dependents, ensuring that they are financially protected in case of an unfortunate event.
Q47.
What is the primary purpose of life insurance products?

a.

To provide investment opportunities

b.

To accumulate wealth quickly

c.

To protect against the loss of productive abilities

d.

To create temporary financial goals

Discuss
Answer: (c).To protect against the loss of productive abilities Explanation:The primary purpose of life insurance products is to protect against the loss of economic value of an individual's productive abilities. Life insurance provides financial protection to the insured's dependents or to the insured individual in case of unfortunate events like death or disability.
Q48.
What is a key characteristic of term insurance?

a.

It provides permanent coverage.

b.

It offers investment opportunities.

c.

It has a specified time period for coverage.

d.

It is expensive.

Discuss
Answer: (c).It has a specified time period for coverage. Explanation:The key characteristic of term insurance is that it provides valid cover only during a specified time period. It offers protection for a temporary period, such as until a certain age, and does not have a savings or cash value element.
Q49.
What is the unique selling proposition (USP) of term assurance?

a.

High returns on investment

b.

High premium costs

c.

Low price and affordability

d.

Permanent coverage

Discuss
Answer: (c).Low price and affordability Explanation:The unique selling proposition (USP) of term assurance is its low price and affordability. Term insurance is known for being a cost-effective way to purchase a relatively large amount of life insurance coverage on a limited budget.
Q50.
What is the main difference between term assurance and whole life insurance?

a.

Term assurance is cheaper.

b.

Whole life insurance provides investment opportunities.

c.

Term assurance is a permanent policy.

d.

Term assurance is temporary, while whole life insurance is permanent.

Discuss
Answer: (d).Term assurance is temporary, while whole life insurance is permanent. Explanation:The main difference between term assurance and whole life insurance is that term assurance provides temporary coverage, usually for a specified time period. In contrast, whole life insurance is a permanent life insurance policy that remains in force until the death of the insured and includes a savings or cash value component. Whole life insurance is designed for long-term financial protection and wealth accumulation.
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