Insurance - Study Mode

[#336] Which of the below mentioned insurance plans has the least or no amount of savings element?
Correct Answer

(A) Term insurance plan

Explanation

Solution: Term insurance plan has the least or no amount of savings element. Term insurance does not have a savings element associated with it.

[#337] Which among the following cannot be termed as an asset?
Correct Answer

(D) House

Explanation

Solution: Human Life cannot be termed as an asset. People are not assets like tangible fixed assets such as equipment. People cannot be owned. People do not depreciate. If they are assets, people are intangible assets.

[#338] In Unit Linked plan, the Fund Value is a product of which of the following:
Correct Answer

(D) Net Asset Value & No. of Units

Explanation

Solution: In Unit Linked plan, the Fund Value is a product of Net Asset Value & No. of Units. A value fund is a fund that follows a value investing strategy and seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics.

[#339] Why Pensions are said to represent the flip side of life insurance?
Correct Answer

(C) Both A & B

Explanation

Solution: Pensions are said to represent the flip side of life insurance because Life insurance provides protection against premature death whereas pension covers the contingency of living too long and In life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments.

[#340] Public Pensions are provided by the
Correct Answer

(D) State

Explanation

Solution: Public Pensions are provided by the State. Public pensions are especially important for the 28 percent of state and local government workers not covered by Social Security.