Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is the first step in assessing a client's risk tolerance when recommending insurance products?

Which action should you take?

Choose only one option

Focus on the client's occupation and personal liabilities

Analyze the client's current insurance coverage

Conduct a detailed interview to understand financial goals and concerns

Ask the client to rate their comfort level with market risk

Question 2: What is the key advantage of recommending a whole life insurance policy over a term insurance policy to a client with estate planning needs?

Which action should you take?

Choose only one option

Whole life policies provide both a death benefit and a cash value accumulation, useful for estate planning

Term policies are more flexible in terms of adjusting coverage as per the client's financial situation

Term insurance policies have lower premiums, making them more affordable for younger clients

Whole life insurance policies typically offer better tax advantages for estate planning

Question 3: The IRDAI's regulations on advertisements by insurance companies require that advertisements must not be:

Which action should you take?

Choose only one option

Misleading or create unrealistic expectations

Only focus on the highest selling policies

Provide details on policy exclusions

Limited to life insurance products only

Question 4: How does an insurance advisor determine the appropriate level of life insurance coverage for a client with varying dependents over time?

Which action should you take?

Choose only one option

By recommending a fixed sum regardless of the client's circumstances

By suggesting a policy based only on the client's age and health

By analyzing the client's income, liabilities, future financial goals, and the number of dependents

By focusing solely on the client's income without considering expenses

Question 5: What is the significance of the surrender value in life insurance?

Which action should you take?

Choose only one option

Guaranteed payout after a claim

Cash value upon policy cancellation

Amount paid during premium holidays

Benefit received on policy maturity

Question 6: How does the IRDAI's (Insurance Regulatory and Development Authority of India) Solvency Margin requirement impact insurers?

Which action should you take?

Choose only one option

It ensures that insurers can offer the lowest premium rates

It allows insurers to offer higher commissions to advisors

It mandates a fixed return on insurance policies

It ensures that insurers maintain a buffer to cover liabilities