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Category: IC23 APPLICATIONS OF LIFE INSURANCE – 18

IC23 APPLICATIONS OF LIFE INSURANCE – 18

Que. 1 : Q1) What provides a method to calculate the quantum of life insurance the family bread earner should go in for to provide for his family in his absence?

   1.  a) Insurance basis

   2.  b) Human life value

   3.  c) Premium calculation

   4.  d) None of these

Que. 2 : Q2) In which annuity type, both the annuitant and the spouse receive annuities for life and after this, the purchase price is returned to the nominee?

   1.  a) Joint life, last survivor annuity with return of purchase price

   2.  b) Joint life, last survivor annuity without return of purchase price

   3.  c) Life annuity with return of purchase price

   4.  d) Life annuity guaranteed

Que. 3 : Q3) Choose the incorrect option with regards to gratuity.

   1.  a) Gratuity is a statutory liability as per Payment of Gratuity Act, 1972.

   2.  b) Gratuity depends on the last drawn wages (basic and dearness allowance) and the length of service rendered.

   3.  c) A gratuity fund is an irrevocable trust fund which is used only for the purpose of setting the gratuity of the employees.

   4.  d) A gratuity fund offers no tax benefits

Que. 4 : Q4) What is defined as "the legal declaration of the intention of the testator, with respect to his property, which he desires to be carried into effect after his death?

   1.  a) Succession certificate

   2.  b) Will

   3.  c) Delay

   4.  d) Indecision

Que. 5 : Q5) In Third way annuities, the annuitant is allowed to take income from the annuity till the age of _________.

   1.  a) 55 years

   2.  b) 65 years

   3.  c) 75 years