SCI M9 – Life Insurance And Investment-Linked Policies

Which of the following statement(s) is(are) true about Family Income Benefit Rider?
I. The term of this rider is not allowed to be longer than that of the basic policy, and the amount of benefit is usually dependent on the basic sum assured.
II. It is considered a decreasing Term Rider, as the earlier the payor (the parent) dies, the longer the period that the child will receive the income and, hence, the larger the accumulated total amount that the child will receive.
III. The longer a person lives, the lesser the benefit that his beneficiary will receive.
IV. This rider is usually attached to a juvenile policy to provide a monthly, quarterly or annual income to a child till the end of the term of this rider in the event of the breadwinner’s premature death.

Which of the following statement(s) is(are) true about Payor Benefit Rider?
I. Some insurers incorporate critical illness cover into this rider.
II. This rider provides that, if the person (usually the parent) who is paying the premiums on the juvenile policy dies, or becomes disabled before the child (life insured) has reached a specified age (usually either 21 or 25 years old), the insurer will waive all future premiums until the child reaches the specified age.
III. It is not an insurance cover, but a right to purchase additional amounts of insurance at specified intervals or when certain events occur over an extended period of time, without evidence of insurability.
IV. The types of critical illnesses covered will be the same as those under the stand-alone Critical Illness Insurance policy issued by the insurer.

How many tiers of financial literacy does the MoneySENSE programme cover?

Which of the following statement(s) is (are) true about premiums?
I. When an insurer uses just the rate of mortality/morbidity and investment income to calculate the premiums, it is actually calculating the net premiums.
II. Whatever the investment experience, premium calculations are made in the expectation that the insurer will earn the assumed rate of interest.
III. The higher the assumed rate of interest, the higer will be the premiums charged to policy owners.
IV. Premiums are the main source of money used to pay death benefits.

Which of the following statement(s) is (are) true about Critical Illness Insurance
I. The illnesses that are covered by critical Illness Insurance vary.
II. Critical Illness Insurance will pay out a lump sum when the policy owner dies or is diagnosed with a major illness.
III. Critical Illness Insurance provides benefits for certain medical costs that result from accidents and sicknesses.
IV. Critical Illness Insurance will refund the in-patient expenses that the policy owner has to pay while in hospital, depending on the limits in the policy.

In group term life insurance, on happening which of the following the coverage for each individual employee usually terminates?
I. When the employee is transferred to work overseas in an associated or Subsidiary company for an extended period of time in which he is no Longer on the local payroll of his employer.
II. When the employee retires or terminates his employment with the Employer.
III. When the employee reaches a specified age.
IV. When the employee is on temporary leave of absence, vacation without Pay, sick or injured for more than three months.

Which of the following statement(s) is (are) true about term insurance policy?
I. Term Insurance provides no benefits after that period ends.
II. Term Insurance provides protection for a certain period of time.
III. Term Insurance contains a cash value element.
IV. In Term Insurance the cash value arises as a result of level premiums being charged for what is a certain event.

Which of the following statement(s) is (are) true about insurable interest?
I. A beneficiary need not provide evidence of insurable interest in order to receive the benefits of a life insurance policy.
II. In life insurance, an insurable interest, or a presumed insurable interest need not be present at the time of the life insured’s death.
III. In life insurance, an insurable interest, or a presumed insurable interest must be present at the time of the life insured’s death.
IV. In life insurance, there must be an insurable interest, or a presumed insurable interest, present at the inception of the insurance contract.

Which of the following statement(s) is (are) true about principle of indemnity in insurance?
I. For an indemnity principle to work, the insured must establish the extent and value of his loss.
II. For an indemnity principle to work, the insured must show that he has suffered a loss in monetary terms.
III. The purposes of employing this principle in insurance are to prevent the insureds from profiting from insurance and at the same time to reduce moral hazard that can be exercised by some insureds.
IV. For an indemnity principle to work, the insured is entitled to recover more than the amount of the loss from a single loss, irrespective of the number of policies that he has in respect of the same property.

Which of the following statement(s) is(are) true about intermediaries?
I. Insurance can be purchased via intermediaries, but it can not be purchased direct from insurer.
II. In Singapore, intermediaries selling life and health insurance products are termed as representatives and they can be representatives of either life insurance companies (insurers) or banks or other financial institutions or financial adviser firms.
III. In legal terms every intermediary is an agent, i.e. one who is authorised by a party, called the principal, to bring that principal into a contractual relationship with another party.
IV. An insurance intermediary means a person who, as an agent for one or more insurers or as an agent for insureds or intending insureds, arranges contracts of insurance in Singapore, and includes an insurance agent or an insurance broker.

Which of the following statement(s) is (are) true about Group Life Insurance?
I. Insured members may or may not have the right to decide on the amount of coverage that they want to be covered for.
II. Only a master contract is issued for the group, although the number of insured persons.
III. Only members who belong to the group are covered.
IV. Group is not evaluated depending on the gender and age distribution of the group.

Which of the following benefit(s) is (are) not provided by the Group Term Life Insurance?
I. Death benefit
II. Total and permanent disability (tpd)
III. Extended benefit
IV. Repatriation benefits

Which type of premiums are more suitable for Whole Life Insurance and Endowment Insurance policies?

Which of the following statement(s) is(are) true about critical illness insurance?
I. Critical Illness Insurance will pay out a lump sum when the policy owner dies or is diagnosed with a major illness.
II. Critical Illness Insurance doesn’t include most cancers.
III. Critical illness insurance also known as Hospital and Surgical Insurance or Hospital Income Insurance.
IV. Critical Illness Insurance provides benefits for certain medical costs that result from accidents and sicknesses.

According to the frequency of premium payments, which of the following are included in life insurance products?
I. Limited Premium Payment policy
II. Regular Premium policy
III. Yearly Renewable Premium policy
IV. Recurrent Single Premium policy

Which one is the correct example of First-to-die Life Insurance policy?

Which of the following statement is correct about annuity?

Which of the following statement(s) is(are) correct regarding underwriting?
I. Underwriting is a method to minimise problems arising from anti-selection.
II. Underwriting is the process of identifying and classifying the degree of risk represented by an intending insured.
III. Underwriting involves identifying the risks that an intending insured presents, as well as classifying the degree of risk that an intending insured represents.
IV. Underwriting provides the opportunity to build cash values which the policy owner can borrow from or withdraw.

To cover what types of expenses/benefit incurred as a result of accident, sickness or disease commencing or occurring during the period of insurance health insurance Products are designed?
I. Hospital expenses
II. Surgical expenses
III. Emergency accident outpatient expenses
IV. Death benefit

Which of the following statement isn’t true about Decreasing Term Rider?
I. In decreasing term rider, the amount of cover in the last few years of the rider term is usually very small.
II. Most insurers will arrange for the policy owner to pay the premium for less than the full duration of the rider, yet the coverage will still continue to the full term of the rider
III. A decreasing Term Rider can be used by a policy owner to protect the mortgage on his home.
IV. A decreasing Term Rider is the same as the level Term Rider, except that the sum assured for this rider increases yearly.