Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is the primary advantage of offering a whole life insurance product to a client seeking long-term wealth accumulation?

Which action should you take?

Choose only one option

It provides higher commissions for the advisor compared to term life policies

It guarantees high immediate returns, making it ideal for short-term wealth building

It provides lifetime coverage along with a cash value component that grows over time

It offers flexible payment options, allowing clients to adjust premiums based on financial goals

Question 2: Which of the following regulations directly governs the sale of insurance products in the BFSI sector in India?

Which action should you take?

Choose only one option

Securities and Exchange Board of India Act (SEBI Act)

Banking Regulation Act

Financial Services Regulation Act

Insurance Regulatory and Development Authority Act (IRDAI Act)

Question 3: What is the primary function of a premium financing arrangement in life insurance?

Which action should you take?

Choose only one option

It allows the policyholder to purchase additional coverage

It allows the insurer to offer higher death benefits

It provides tax advantages for policyholders

It allows the policyholder to finance premium payments through a loan

Question 4: What is the main challenge when selling insurance policies to high-net-worth individuals (HNWI)?

Which action should you take?

Choose only one option

Convincing them that insurance is necessary for them

Tailoring the policy to meet unique financial goals

Offering lower-cost policies

Overcoming their skepticism about insurance companies

Question 5: When conducting a risk assessment for life insurance, which factor is most crucial in determining the client's coverage needs?

Which action should you take?

Choose only one option

Age and family structure

Current income and liabilities

Length of current life insurance policies

Client's health history

Question 6: In building long-term relationships with clients, what role does honesty play?

Which action should you take?

Choose only one option

It ensures you are always in control of the conversation

It prevents clients from asking questions about policy details

It builds trust, making clients more likely to refer you and stay loyal

It ensures clients only purchase policies with the highest returns