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Advanced Wealth Management Course (IIBF) - Paper 4

Part I: Ch 5: Group Life Products

Q1.

The main advantages of Group Insurance may be:

Low cost of insurance

Simple administration

Simple underwriting procedure

Both (a) & (c)

All of the above

Q2.

In Non-Contributory Plans, the employee pays a share of the premium.

True

False

Q3.

According to EDLI Scheme, insurance cover is provided to the employee’s heirs equal to the balance in his P.F. A/c, subject to a maximum of Rs.___________.

Rs. 25,000

Rs. 30,000

Rs. 35,000

Rs. 40,000

Q4.

(I) Under EDLI Scheme, the contribution is linked with wages and goes on increasing as the wages decrease. (II) Gratuity is a payment that the company makes to the employee at the end of service.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q5.

(I) Gratuity is a contributory fund to which only the employer contributes. (II) GLES is a scheme which offers insurance cover together with a savings element.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q6.

Under the Income Tax Act, Superannuation contributions by the employer are tax-exempt up to _________ of the annual salary.

10%

15%

20%

25%

Q7.

Which schemes are of recent vintage and cover the risk of mortality of borrowers under a mortgage program or lending operation of a bank or finance company?

GSLI

GLES

Group Annuity Schemes

Group Credit Term Schemes

Q8.

Superannuation is a contribution made by the company towards pension benefits of an employee.

True

False

Q9.

Superannuation is available to an employee on:

Attainment of a certain age

Retirement