Vidyalelo
Commerce · Q204

Insurance

Graduate and Post Graduate · Commerce · question 204

Q204

Which of the following is NOT true regarding ULIP?

A.
A unit holder can choose between different kinds of funds
B.
Life insurer provides guarantee for unit values
Answer
C.
Units may be purchased by payment of a single premium or by regular premium payments
D.
ULIP policy structure is transparent with regards to the insurance expenses component

Answer: Option B

Solution

Answer: Option B
Solution:
ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.