Insurance Awareness Questions – Set 5

Dear Aspirants,
Welcome to Insurance Awareness Questions in AffairsCloud.com. Here we are covering some important Insurance Awareness Questions & Answers with Explanations. Do study this questions thoroughly as it may prove to be helpful in upcoming exams and also in interviews.

1. The person in whose name the insurance policy is made is referred to as __________
   A. Insured or Policyholder
   B. Nominee or Beneficiary
   C. Insurer
   D. Agent
   
   Answer & Explanation

   A. Insured or Policyholder
   Explanation:
   A person or group in whose name an insurance policy is held is known as Insured or Policyholder.
   
   
2. The one who will get the insured amount if you die, is referred to as __________
   A. Insured or Policyholder
   B. Nominee or Beneficiary
   C. Insurer
   D. Agent
   
   Answer & Explanation

   B. Nominee or Beneficiary
   Explanation:
   A person who receives the benefit in case of death of the insured person is a nominee.
   
   
3. __________ refers to the insurance company that offers the policy.
   A. Insured or Policyholder
   B. Nominee or Beneficiary
   C. Insurer
   D. Agent
   
   Answer & Explanation

   C. Insurer
   Explanation:
   Insurance company that issues a particular insurance policy to an insured.
   
   
4. ________ is the amount of money an insurance policy guarantees to pay before any bonuses are added.
   A. Fund
   B. Annuity
   C. Sum Assured
   D. Maturity Value
   
   Answer & Explanation

   C. Sum Assured
   Explanation:
   Sum Assured is the guaranteed amount the policyholder will receive.
   
   
5. __________ is the amount the insurance company has to pay you when the policy matures that would also include the sum assured and the bonuses.
   A. Fund
   B. Annuity
   C. Sum Assured
   D. Maturity Value
   
   Answer & Explanation

   D. Maturity Value
   Explanation:
   Maturity value is the amount the insurance company has to pay an individual when the policy matures.
   
   
6. Which of the following is an optional feature that can be added to a policy?
   A. Rider
   B. Annuity
   C. Sum Assured
   D. Maturity Value
   
   Answer & Explanation

   A. Rider
   Explanation:
   A rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost.
   
   
7. If you stop paying the premium, but do not withdraw the money from your policy, then the policy is referred to as ________
   A. Surrender Value
   B. Paid-up value
   C. Sum Assured
   D. Maturity Value
   
   Answer & Explanation

   B. Paid-up value
   Explanation:
   Paidup value is the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums.
   
   
8. If you might want to discontinue the policy, and take whatever money is due to you. The amount the insurance company then pays is known as _________
   A. Surrender Value
   B. Paid-up value
   C. Sum Assured
   D. Maturity Value
   
   Answer & Explanation

   A. Surrender Value
   Explanation:
   The amount payable to a person who surrenders the insurance policy.
   
   
9. The Payment to the policyholder at the end of the stipulated term of the policy is called _______
   A. Surrender Value
   B. Paid-up value
   C. Sum Assured
   D. Maturity Claim
   
   Answer & Explanation

   D. Maturity Claim
   Explanation:
   The Payment to the policyholder at the end of maturity date is known as maturity claim.
   
   
10. The payment of sum assured to the insured person which has become due by instalments under a money back policy is known as ______
    A. Surrender Value
    B. Paid-up value
    C. Sum Assured
    D. Survival Benefit
    
    Answer & Explanation

    D. Survival Benefit
    Explanation:
    survival benefits are benefit given to the policy holder during or upon completion of the policy tenure.
    
    

Click Here To View Insurance Awareness Questions