Q122
In traditional life insurance policies, the investment risk is borne by the _________, while in unit linked plans, the investment risk is borne by the _________.
A.
Policyholder, unitholder
B.
Insurance company, unitholder
AnswerC.
Insurance company, insurance company
D.
Policyholder, insurer
Answer: Option B
Solution
Answer: Option B
Solution:
In traditional life insurance policies, the investment risk is borne by the insurance company, while in unit linked plans, the investment risk is borne by the unitholder.