Deck 9: Financial Planning and Life Assurance Products

Question 1

Illustrate, as to How, the Internet aids in the Process of Financial Planning ... I: Provides the Information, Related to Various Facets of Financial Planning. II: Provides the Up-Dated Information, Regarding the Performance of Various Investment-Products. III: Provides the Quotations, which can aid in making the Financial Decisions.

A)I, Only.
B)II, Only.
C)III, Only.
D)I, II, and III.

Answer 1

I, II, and III.

Question 2

Identify a Product, that can be categorised under Transactional-Products.

A)Bank Deposits
B)Gold
C)Lockers
D)Life Assurance

Answer 2

Bank Deposits

Question 3

Identify a Product, that can be categorised under Contingency-Products. Choose the Most Appropriate Option.

A)Bank Deposits
B)Shares
C)Bonds
D)Life Assurance

Answer 3

Life Assurance

Question 4

In India, Whole-Life Assurance Plans, --.

A)Pay the Death-Benefits, on Death of the Life- Assured
B)Pay the Death-Benefits, Post-Retirement
C)Pay the Death-Benefits, Post-80-Years-of-Age
D)Pay the Death-Benefits, on Payment of 30 Successful Annual Premiums

Question 5

Describe the Primary Objective behind Buying an Insurance Product.

A)Tax-Planning
B)Investment-Security
C)Protection against the Loss of Economic Value of an Individual's Productive Abilities
D)Wealth-Accumulation

Question 6

The Premium, Paid for Whole-Life Assurance, is --- than the Premium, Paid for Term Assurance.

A)Lower
B)Equal
C)Higher
D)Substantially Lower

Question 7

Identify the Flip-Side of a Term Assurance.

A)It is the Cheapest Form of Assurance.
B)It can be converted in to a Whole-Life Assurance.
C)It does not provide Any Returns, on Maturity.
D)It comes Hand y, as an Income-Replacement Plan.

Question 8

Identify the Life Assurance Plan, where, the Premium is Payable throughout the Life of the Life-Assured.

A)Whole-Life Assurance
B)Endowment Assurance
C)Annuity
D)Money-Back Assurance

Question 9

Pick an Attribute, that can be associated with Life Assurance Policies.

A)In-Separability
B)Heterogeneity
C)In-Tangibility
D)Superlative Returns

Question 10

Mortgage-Redemption-Insurance (M.R.I.) is an Example of --.

A)Decreasing, Term Assurance
B)Increasing, Term Assurance
C)Term Assurance, With Return of Premium(s)
D)Term Assurance, With Fixed Returns

Question 11

Select the Option, that is True, with Regard to Term Assurance Plans.

A)Term Assurance Plans come with Life-Long Renewability Option.
B)All Term Assurance Plans come with a Built- In Disability-Rider.
C)Term Assurance Plans can be bought as a Stand -Alone Policy, as well as, a Rider with Another Policy.
D)There is No Provision in Term Assurance Plans, to convert it into a Whole-Life Assurance Plan.

Question 12

The Conversion-Option in a Term Assurance Plan, can be used to convert the Policy, into Which One of the Following Plans?

A)Whole-Life Assurance
B)Unit-Linked Insurance Plan (U.L.I.P.)
C)Money-Back Assurance
D)Mortgage-Redemption- Insurance (Decreasing, Term Assurance)

Question 13

Name the Policy, that combines Pure Life Assurance with a Savings-Element. If the Life-Assured lives upto Some Specified Time, then He or She receives the Policy's Face-Value.

A)Mortgage-Redemption- Insurance Policy
B)Increasing, Term Assurance Policy
C)Decreasing, Term Assurance Policy
D)Whole-Life Assurance Policy

Question 14

Name the Term, used to describe "With-Profits" Policies.

A)Interest-Paying Policies
B)Participating Policies
C)Dividend Policies
D)Bonus-Sharing Policies

Question 15

Describe a Tangible Product.

A)A Tangible Product refers to the Physical Objects, that cannot be Perceived by Touch.
B)A Tangible Product refers to the Physical Objects, that can be Directly Perceived by Touch.
C)A Tangible Product is One, that has In-Finite Value.
D)A Tangible Product is One, that has No Value.

Question 16

Describe an In-Tangible Product.

A)An In-Tangible Product refers to the Products, that can Only be Perceived In-Directly.
B)An In-Tangible Product refers to Physical Objects, that can be Directly Perceived by Touch.
C)An In-Tangible Product is One, that has In- Finite Value.
D)An In-Tangible Product is One, that has No Value.

Question 17

You are Paying a Higher Premium towards Your Life Assurance Policy, as compared to the Others. What Impact, will it have, on the Compensation-Paid, (as compared to the Others), to the Beneficiary, in the Event of Your Death?

A)Compensation remains the Same.
B)Compensation will be Higher.
C)Compensation will be Lower.
D)There will be No Compensation.

Question 18

--- is an Example of an In-Tangible Product.

A)Car
B)Soap
C)Life Assurance
D)House

Question 19

Inter-Temporal Allocation of Resources, refers to --.

A)Postponing the Allocation of Resources, Until the Time is Right
B)Allocation of Resources, over Time
C)Temporary Allocation of Resources
D)Diversification of Resource-Allocation

Question 20

From the Following Options, Identify a Non-Traditional Life Assurance Product.

A)Term Assurance
B)Universal Life Assurance
C)Whole Life Assurance
D)Endowment Assurance

Question 21

From the Following Options, Identify a Traditional Life Assurance Product.

A)Term Assurance
B)Universal Life Assurance
C)Variable Life Assurance
D)Unit-Linked Insurance

Question 22

Describe One of the Major Innovations of the Universal Life Assurance Policy. Choose the Most Appropriate Option.

A)No Premiums, After First Year.
B)Completely Flexible Premiums, After First Policy-Year.
C)Reduced Premiums, After First Year.
D)Regular Pay-Outs, After First Year.

Question 23

Why is, Cash in the Accumulation Account, Not Guaranteed, in Case of Variable Life Assurance Products?

A)Money is invested in Government Debt.
B)Money is invested in the Stocks, through Mutual Funds, where, there are No Guarantees.
C)Money is used for Capital Expenditure.
D)Money is used to service the Insurer's Debt.

Question 24

Identify a Limitation of Traditional Life Assurance Products.

A)High Yields.
B)Clear and Visible Method of arriving at Surrender-Value.
C)Well-Defined: Cash- Value Component and Savings-Value Component.
D)Rate-of-Return is Not Easy to ascertain.