IC23 APPLICATIONS OF LIFE INSURANCE – 21

Q1.Minimum qualifying service of __ is necessary to receive a superannuation pension.
 a) 5 years
 b) 10 years
 c) 15 years
 d) 20 years

 

Q2.Policy money is paid to the court in case of ___.
a) If there is a will in place
 b) Insufficiency of proof of title to the amount secured thereby
 c) There are multiple nominees
d) There has been an absolute assignment of the policy

 

Q 3.Over __ of the income of the Employee State Insurance Scheme comes through contributions.
 a) 60%
 b) 70%
 c) 80%
 d) 90%

 

Q4.Which was established by the Government of India on 23rd August 2003 to promote old age income security by establishing, developing, and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto?
 a) National Pension System
 b) NPS-Lite
 c) Pension Fund Regulatory and Development Authority
 d) None of these

 

Q5.What refers to the possibility of damage/loss to owned property on account of various reasons?
 a) Personal risks
 b) Liability risks
 c) Property risks
 d) None of these

 

Q6.___ not only emphasis the disposition of the assets after one’s death, but it can also involve planning for the use of the assets for better management during his or her lifetime.
 a) Marriage planning
 b) Estate planning
 c) Tax reduction planning
 d) Education planning

 

Q7.A successful _____ can be operated only with proper management controls on prompt accounting and settlement of balances.
 a) Interest and tax
 b) Brokerage
 c) Inward accounts
 d) Non-Proportional treaties

 

Q8.Choose the incorrect option with regards to the taxation aspects of the recognized provident fund.
 a) Employer’s contributions are deductible up to a maximum of 12% of the annual wage bill of the employer.
 b) Employee’s contributions are deductible under section 80C
c) Interest credited up to the notified amount is tax-free. Interest in excess of that is taxable.
d) A recognized provident fund offers tax benefits only to employees.

 

Q9.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?
 a) Provident fund
 b) Superannuation funds
 c) Defined Benefit fund
 d) Defined Contribution fund

 

Q10.For a married couple with small kids___is the least suitable form of life insurance.
 a) Term insurance plans
 b) Children’s plans
 c) Mortgage protection plans
 d) Wealth creation plans

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