Insurance - Study Mode
[#731] On payment of a rider benefit, what happens to a policy contract?
Correct Answer
(D) Continues
Explanation
Solution: On payment of a rider benefit, a policy contract continues. A rider is an add-on to the primary policy, which offers benefits over and above the policy subject to certain conditions. One way to maximize the benefits on your life insurance policy and to customize it to suit your specific needs is by opting for riders.
[#732] In a Unit Linked plan what is the maturity claim payable?
Correct Answer
(D) Fund value
Explanation
Solution: In a Unit Linked plan, Fund value is the maturity claim payable. At the time of maturity of the plan, the policyholder receives the value of the fund, along with bonus and loyalty benefits, if any.
[#733] In a Unit Linked plan what is the death claim payable?
Correct Answer
(C) Sum insured or fund value which is higher
Explanation
Solution: In a Unit Linked plan, Sum insured or fund value which is higher is the death claim payable. The unit-linked insurance plans ( Ulips) provide both death and maturity benefits to the policyholder. If he dies during the term of the policy, the beneficiary will receive one of these: sum assured, the higher of the fund value and sum assured, or sum assured and the value of the fund, depending on the terms of the policy.
[#734] When a death claim is payable?
Correct Answer
(B) If a policyholder dies during the term of policy
Explanation
Solution: When the person assured dies during the Term of the policy i.e. before the date of maturity, proceeds under the policy as a claim, is payable to the beneficiary which is called a Death claim.
[#735] Repudiation of death claim means –
Correct Answer
(C) Rejection of a claim
Explanation
Solution: Repudiation of death claim means rejection of a claim. A repudiated claim is a claim that has been rejected by an insurance company.