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Commerce · Q780

Insurance

Graduate and Post Graduate · Commerce · question 780

Q780

In Unit Linked policies, the risk cover is a multiple of _________

A.
Fund Value
B.
Accumulations
C.
Net Asset Value
D.
Premiums
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.