Q231
Which of the following are the disadvantage(s) of Traditional With Profit policies over ULIPs?
A.
Bonuses are declared only once a year and do not reflect daily fluctuations in the value of the assets
B.
Policyholder's benefits depend on assumptions/discretions of the insurance company
C.
Bonus structure does not reflect the true value of assets of the insurer
D.
All of the above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Bonuses are declared only once a year and do not reflect daily fluctuations in the value of the assets, Policyholder's benefits depend on assumptions/discretions of the insurance company and Bonus structure does not reflect the true value of assets of the insurer are the disadvantages of Traditional With Profit policies over ULIPs.