Given below is a list of policies. Identify under which type of policy, the claim payment is made in the form of periodic payments?

A Money-back policy
B Unit linked insurance policy
C Return of premium policy
D Term insurance policy

Correct Answer: Money-back policy

In money-back policy, the claim payment is made in the form of periodic payments. Money back plan simply means that money comes back to the life insured after a specific interval of time as survival benefit. The money back is guaranteed on the survival of the policyholder. However, in case of death of the policyholder, the nominee gets the sum assured and accrued bonuses, if any.
Bissoy MCQ
#Commerce #Insurance

Related Questions

A payment made under a money-back policy upon reaching a milestone will be classified under which type of claim?
A Death claim
B Maturity claim
C Periodical survival claim
D Surrender claim
A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as
A fixed interval investment
B fixed payment investment
C annuity
D lump sum amount
A television with a price of $300 is to be purchased with an initial payment of $60 and weekly payments of $30. Which of the following equations can be used to find the number of weekly payments, required to complete the purchase, assuming there are no taxes of free?
A 300 = 30w - 60
B 300 = 60w - 30
C 300 = 30w + 60
D 300 = 30w
Treasury security in which final principal payment is separated from periodic interest payment is classified as
A STRIP
B separated security
C inflated security
D coupon paid security
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
A float-fixed swaps
B interest rate swaps
C indexed swaps
D counter party swaps
Which of the following types of life insurance policies pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder on the maturity of the policy if he/she survives the term?
A Whole Life
B Endowment
C Money Back
D Unit Linked
During a month, Jalil used 1/6 of his monthly salary for a car payment and an amount which is 1.25 times more than the car payment for rent. What fraction of his monthly salary did Jalil use that month the car payment and rent combined?
A 5/24
B 3/8
C 7/12
D none of these
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A common stock
B preferred stock
C bonds equity
D common shares
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A bundling
B un-bundling
C financial engineering
D credit enhancement
E B & C
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

Next steps