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: What should an advisor prioritize when assessing the insurance needs of an elderly client?

Which action should you take?

Choose only one option

The client's ability to pay premiums without financial strain

The client's family size and dependents

The client's health status, living expenses, and potential future care needs

The client's asset portfolio and investments

Question 3: Which of the following factors should be considered when recommending a unit-linked insurance plan (ULIP) for a high-net-worth individual?

Which action should you take?

Choose only one option

Solely the client's income and tax status

Risk tolerance and premium payment frequency

Risk tolerance, investment horizon, and tax implications

Type of coverage and claim settlement history

Question 4: What is the primary objective of IRDAI's regulations regarding policyholder protection?

Which action should you take?

Choose only one option

To allow insurance companies to focus on profit maximization

To increase the insurance market share of companies

To ensure that policyholders are treated fairly and that insurance companies operate transparently

To control the number of claims made by policyholders

Question 5: What is the impact of "policy loans" on a permanent life insurance policy?

Which action should you take?

Choose only one option

Policy loans reduce the death benefit and accumulate interest over time

Policy loans must be repaid within a fixed number of years

Policy loans increase the death benefit of the policy

Policy loans provide immediate tax-free withdrawals from the cash value

Question 6: In advising on umbrella liability policies for a high-profile client with complex exposures (properties, vehicles, trusts), which recommendation ensures coverage levels and exclusions align with evolving lifestyle risks and legal trends?

Which action should you take?

Choose only one option

Conduct a thorough risk audit, recommend umbrella coverage increments tied to asset growth, adjust for new exposures (like aircraft or yachts), and schedule annual coverage reviews

Focus only on personal auto and ignore property or trust exposures

Provide a static umbrella limit without annual reviews

Assume the client's risk profile never changes