Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?

A Young people are mostly dependant
B Old people can afford to pay more
C Mortality is related to age
D Mortality is inversely related to age

Correct Answer: Mortality is related to age

Mortality is related to age and hence young people who are less likely to die are charged lower premiums as compared to old people. The level premium is a premium fixed such that it does not increase with age but remains constant throughout the contract period.
Bissoy MCQ
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Related Questions

Which of the following is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?
A Young people are mostly dependent
B Old people can afford to pay more
C Mortality is related to age
D Mortality is inversely related to age
According to a survey of business firms in a certain city, 750 firms offer their employees health insurance , 640 offer dental insurance and 280 offer health insurance and dental insurance. How many firms offer their employees health insurance or dental
A 920
B 1,100
C 1,110
D 1,030
Which of the below is not a factor in determining life insurance premium?
A Mortality
B Rebate
C Reserves
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Which of the following companies is the largest no-life insurance underwriter in Bangladesh terms of gross premium, network of offices and trained manpower?
A Jibon Bima Corporation
B Sadharan Bima Corporatioon
C Prime Insurance Company
D Rupali Insurance Company Ltd.
Which will act as a proof of premium payment should any dispute arise as to premium payment?
A F.P.R.
B R.P.R
C Proposal form
D Policy document
John, twelve years old, is three times as old as his brother. How old will John be when he is twice as old as his brother?
A 15
B 16
C 18
D 20
12 year old Manick is three times as old as his brother Rahul. How old will Manick be when he is twice as old as Rahul?
A 14 years
B 16 years
C 18 years
D 20 years
Arif is 4 times as old as Bobby,in 6 years, Bobby will be twice as old as Sara. Four years from now Arif will be 36 years old,how old will Sara be in 5 years?
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Mary, who is sixteen years old, is four times as old as her brother , How old will Mary be when she is twice as old as her brother?
A 20
B 24
C 25
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Apart from the salary level, what another key feature of Alok’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs?
A Whether the job is office or field-based
B The normal retirement age in relation to the job
C Whether the job is in the public or private sector
D Whether the job is manual or non-manual

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