Correct Answer : USA is known for introducing such policies
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.
Correct Answer : All of the above
Correct Answer : 10th
Correct Answer : Allocation of resources over time
Inter-temporal allocation of resources refer to Allocation of resources over time. One of the principal purposes of saving and investing is to achieve inter-temporal allocation of resources, which is both efficient and effective.
Correct Answer : Rate of return is not easy to ascertain
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life.
Correct Answer : ULIP’s are opaque with regards to their term, expenses and savings components
ULIP's are transparent with regards to their term, expenses and savings components. The value of each unit of a fund is determined by dividing the total value of the fund's investments by the total number of units.
The reason for charging level premiums is Risk increases as age increases, it is convenient to the policyholder and it is convenient to the insurer.
Correct Answer : The decision of the underwriter
Insurance premiums depend on a variety of factors including the type of coverage being purchased by the policyholder, the age of the policyholder, where the policyholder lives, the claim history of the policyholder, and moral hazard and adverse selection. Insurance premiums may increase after the policy period ends.
Correct Answer : Both (a) and (b)
