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[#361] State which is correct out of the following

(A) A Term Insurance policy cannot be convered into any other policy during its duration

(B) Term policy is available both a separate policy and as a rider in another policy

(C) Term policy can be issued with lifelong renewability option

(D) All Term covers will have a disability rider

(E) Horoscope like a certificate of baptism is a standard age proof

(F) Horoscope like certified extract from a family bible as to the date of birth is a standard age proof

(G) Horoscope like a marriage certificate issued by a Roman catholic church is a standard age proof

(H) Horoscope is a non-standard proof of age for life insurance purposes

Correct Answer

(B) Term policy is available both a separate policy and as a rider in another policy
(H) Horoscope is a non-standard proof of age for life insurance purposes

Explanation

Solution: Term policy is available both a separate policy and as a rider in another policy.

[#362] Stet the correct statement?

(A) In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy

(B) An endowment policy only survival benefit is available

(C) In endowment cover only death benefit is there

(D) Endowment plan and Term insurance are similar in benefits

Correct Answer

(A) In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy

Explanation

Solution: In endowment assurance survival up to the end of the term as well as in between death will give the claimant the benefits of the policy.

[#363] Universal Life Insurance is associated with

(A) Universal Life Insurance is associated with Germany

(B) Universal Life plan was first introduced in the UK

(C) France is the home of universal Life policies

(D) USA is known for introducing such policies

Correct Answer

(D) USA is known for introducing such policies

Explanation

Solution: Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.

[#364] Which of the below death claim will be treated as an early death claim?

(A) If the insured dies within three years of policy duration

(B) If the insured dies within five years of policy duration

(C) If the insured dies within seven years of policy duration

(D) If the insured dies within ten years of policy duration

Correct Answer

(A) If the insured dies within three years of policy duration

Explanation

Solution: If the insured dies within three years of policy duration will be treated as an early death claim. If the life assured dies during the term of the policy, the death claim arises. If the death has taken place within the first two years of the commencement of the policy, it is called an early death claim and if the death has taken after 2 years, it is called a non early death claim.

[#365] Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect?

(A) Claim paid on maturity of a term insurance policy

(B) An instalment payable upon reaching the milestone under a money-back policy

(C) Claim paid for critical illnesses covered under the policy as a rider benefit

(D) Surrender value paid on surrender of an endowment policy by the policyholder

Correct Answer

(A) Claim paid on maturity of a term insurance policy

Explanation

Solution: Claim paid on maturity of a term insurance policy will trigger survival claims. The payment by the insurer to the insured on the date of maturity is called maturity payment. The amount payable at the time of the maturity includes a sum assured and bonus/incentives, if any.