CHAPTER 5

1) Which insurance can help to protect the future loss of income

Medical
ULIP
Term Assurance

None of the above

2) Which insurance can help protect against unexpected medical emergencies

Term insurance
ULIP
Endowment

Medical

3) In the absence of the parent which insurance helps the child to achieve his dreams
Children insurance
Medical Insurance
Joint Insurance
None of the above
4) Additional term insurance can provide protection against
Credit card dues
Personal loans
Car loan

All the above

5) plan can provide regular income

Medical
Term

All the above

Pension

6) can provide the three benefits of protection, return on investments and tax benefits
Proper lifting of loan
proper financial plan
None of the above
All the above
7) Life insurance companies offer various plans covering
The risk of dying early
The risk of living too long
Both option 1 Option 2
None of the above
8) When are the two basic elements offered by insurance companies in India
Death cover
Maturity benefit
Both option 1 Option 2

None of the above

9) . amount is paid to the nominee/beneficiary in the even of death of the life insured during the
term of the policy.
Maturity
Death cover
Loan
None of the above
10) . benefit is paid after the life insured survives through the term of the policy
Maturity
Death cover
Surrender
All of the above
11) In the plan the life insurance company promises to pay death sum insured but no maturity benefit
Medical
Endowment
Term Assurance
All the above
12) Periodicals payment are made to the policyholder during the term of the policy under. type
of policies
Moneyback
Endowment
ULIP
None of the above
13) .. Plans re the cheapest insurance plans available in the market
Term insurance
Endowment
Health insurance

Money Back

14) .. Plans offer only death cover

Health Insurance
Unit Linked

Term Insurance

Endowment

15) Simplest form of insurance plans offered by insurance companies

Endowment insurance
Health Insurance
Term Assurance

None of the above

16) Which insurance policy is the best to cover larger liabilities like home loans or car loans
Medical insurance
Term insurance
Endowment insurance
None of the above
17) A plan is the opposite of a term insurance plan
Health
Pure endowment
Money Back

Endowment

18) Which plan assure to pay the sum assured on survival and not on death
Term insurance
Medical insurance
Pure endowment

All of the above

19) plan ha sonly maturity benefit and no death benefit

Pure endowment
Term insurance
ULIP

None of the above

20) An.. plan is basically a combination of a term insurance plan and a pure endowment plan
Until linked insurance
Endowment insurance
Medical insurance
None of the above
21) Which is the savings element of an endowment plan
Bonus
Premium

Sum assured

None of the above

22) In these plans the maturity benefit is double the death cover
Endowment insurance
Double endowment insurance
ULIP
Health insurance
23) Plans where the policyholders are entitled to participate in the profits of the insurance company
Participating plans
With profit plans
None of the above
Both participating or with profits plans
24) A term insurance plan with an unspecified period is called a plan
Pure endowment
Money Back
Unit linked

Whole life

25) A . plan is useful when the life insured cannot initially afford to pay a higher
premium
Term Insurance
Convertible
Double endowment
Money Back
26) At the time of the plan conversion does the life insured require to undergo a medical check-up
Yes always
Sometimes
Depends on each case
No never
27) This plan is ideal for married couple
Double endowment
ULIP

Joint life insurance

All of the above

28) The is a series of regular payments from an insurance company to an individual in return
for a purchase price/instalment premiums for a specified number of years
Annuity
Premium
Bonus
Sum assured
29) The term master policy is used in . insurance policies
Annuity
Unit linked
Group

None of the above

30) Micro insurance covers the following group

HIG
LIG

All the above

MIG

31) The IRDA has specified that the life cover provided under micro-insurance products should range
from
Rs.1000 to Rs.10000
Rs.5000 to Rs.10000
Rs.500 to Rs.5000
Rs.5000 to Rs.50000
32) These plans can be sold by both a life insurance agent and general insurance agent
Unit linked insurance
Micro insurance
Double endowment
None of the above
33) give the insured the option to participate the growth of the capital markets
Term insurance
Unit linked
Health insurance
All of the above
34) The time gap between the policy start date and the date of commencement of risk
Deferment period
Premium paying period
Cooling off period
None of the above
35) Under section 80C the maximum tax deduction that can be gained for premium paid is Rs. in
financial year
50,000
1,00,000
75,000
25,000
36) The maturity benefit amount received by the life insured is tax-free under section of the
Income Tax Act
112
10 (10D)
48
None of the above
37) For Income Tax benefits, the premium should not be more than % of the sum insured
15
25
30
20