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- Insurance Check Up Are You Doing It Right Part 2
Insurance check-up: Are you doing it right? - Part 2
1. How is a ULIP (Unit Linked Insurance Plan) different from a traditional endowment policy?
Correct option is B - ULIPs provide life insurance and invest in market-linked instruments like equity and debt. Endowment plans are low-risk savings-cum-insurance products with fixed returns.
2. Ravi has a health insurance plan with a co-payment clause of 20%. His hospital bill comes to ₹1,00,000. How much will Ravi have to pay from his pocket?
Correct option is B - Co-payment means the policyholder bears a portion of the claim. With a 20% co-pay, Ravi pays ₹20,000 and the insurer pays ₹80,000.
3. Priya’s health insurance policy offers a ‘restoration benefit’. What does that mean?
Correct option is C - Restoration benefit means the sum insured is replenished if it's fully or partially exhausted in a policy year especially useful in case of multiple hospitalisations.
4. Which of these features is typically involved in the underwriting process for insurance?
Correct option is B - Underwriting is the insurer’s process of assessing risk before issuing a policy. It includes evaluating age, health, occupation, and medical history.
5. Meena forgot to renew her health insurance policy by the due date. She paid the premium 25 days later. What saved her policy from lapsing?
Correct option is B - Most insurance policies offer a grace period (typically 15–30 days) after the due date. Meena paid within that time, so her policy remained active.
6. Which of the following correctly describes the purpose of a health insurance “waiting period”?
Correct option is C - Waiting periods (e.g., 2–4 years) apply to pre-existing illnesses. Claims during this period for such conditions aren’t accepted.
7. What’s a key risk of treating endowment policies or ULIPs as your only form of life cover?
Correct option is C - These plans often provide lower life cover compared to term plans. Relying solely on them may leave your family financially vulnerable.
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90% Score
7 answers out of 8 questions attempted correctly.
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