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Commerce · Q765

Insurance

Graduate and Post Graduate · Commerce · question 765

Q765

As per IRDA, which of the following non-traditional products are permitted to be sold?

A.
Variable insurance plans
B.
Unit Linked insurance plans
C.
Both A & B
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
As per IRDA, Variable insurance plans and Unit Linked insurance plans non-traditional products are permitted to be sold. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. Unit linked insurance plan(ULIP) is a market-linked product that aggregates the very best of investment and insurance. It is a plan which is linked to the capital market and offers flexibility to invest in equity or debt funds as per risk appetite.