Q368
State which of the following statements is correct
A.
In ULIPs the insurance cover must be a minimum multiple of the premium
AnswerB.
ULIPs can be surrendered after two years
C.
Both the above statements are correct
D.
Both the above statements are wrong
Answer: Option A
Solution
Answer: Option A
Solution:
In ULIPs the insurance cover must be a minimum multiple of the premium. ULIPs determine the cover as a multiple of the annual premium. If you are looking for an investment avenue, choose a plan with the lowest Sum Assured because a higher cover means a higher mortality charge.