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Category: IC23 APPLICATIONS OF LIFE INSURANCE – 21

IC23 APPLICATIONS OF LIFE INSURANCE – 21

Que. 1 : Q1) Life insurance is basically for providing financial security to the families of deceased policyholder and this claim settlement naturally assumes a very great importance in the total operations of a life insurance company?

   1.  a) Maturity claims

   2.  b) Death claims

   3.  

   4.  

Que. 2 : Q2) What can be granted by the court to realise the debts and securities of the deceased and to give valid discharge?

   1.  a) Proposal form

   2.  b) Succession certificate

   3.  c) Application certificate

   4.  d) None of these

Que. 3 : Q3) Under which fund, a fixed percentage of the salary of the employee is contributed by the employer into the fund and this contribution coupled with the contribution by the employer into the fund?

   1.  a) Provident fund

   2.  b) Superannuation funds

   3.  c) Defined Benefit fund

   4.  d) Defined Contribution fund

Que. 4 : Q4) For a married couple with small kids____________is the least suitable form of life insurance.

   1.  a) Term insurance plans

   2.  b) Children’s plans

   3.  c) Mortgage protection plans

   4.  d) Wealth creation plans

Que. 5 : Q5) Choose the incorrect option with regards to the taxation aspects of the recognised provident fund.

   1.  a) Employer’s contributions are deductible up to a maximum of 12% of the annual wage bill of the employer.

   2.  b) Employee’s contributions are deductible under section 80C

   3.  c) Interest credited up to the notified amount is tax free. Interest in excess of that is taxable.

   4.  d) A recognised provident fund offers tax benefits only to employees.