India Today


How much do you know about the basics of life insurance? Find out if you are as smart as you think you are



Q1. What is the goal of life insurance?

a) Make your family wealthy

b) Financial security for your family

c) Pay for emergency medical expenses

Q2. LIC of India is?

a) Life Insurance Company

b) Life Insurance Corporatio­n

c) Life Insurance Committee

Q3. Premium is?

a) The bonus from the policy

b) What you get from the insurance company

c) What you pay for the policy

Q4. Life insurance came to India from

a) USA

b) Singapore

c) United Kingdom

d) Russia

Q5. Insured is the person who is?

a) Employed by the insurer

b) The person whose name is in the policy

c) The nominee in the policy

Q6. When can insurance premiums be paid?

a) One time at the time of purchase

b) Annually/Half-yearly/Quarterly/ Monthly/ One-time

c) As and when you feel like


Q1. Life insurance can be taken by?

a) Men;

b) Womenc

c) Both

Q2. Life insurance is regulated by?

a) CII;



Q3. You can buy life insurance

a) Online only

b) Offline only

c) Online and Offline

Q4. The cost of life insurance depends on

a) Your age

b) Health condition

c) The type of policy

d) All the above

Q5. In case of death, the policy proceeds go to

a) Your neighbour

b) Your financial dependants

c) The nominee(s) mentioned in your policy

Q6. Insurance premiums qualify for?

a) Tax deduction under Section 80D

b) Tax deduction under Section 80C

c) No tax savings


Q1. Life insurance premium can go up in case of?

a) Being healthy

b) Living in a metro

c) Being unhealthy

Q2. The word Assurance is used for

a) Life insurance

b) Medical insurance

c) Fire insurance

Q3. Insurance regulator IRDAI is headquarte­red in?

a) Delhi;

b) Hyderabad

c) Mumbai

Q4. LIC policy is backed by?

a) Premium collected

b) Paid-up capital

c) Sovereign Guarantee

Q5. A term insurance is a must because

a) It is purest form of life insurance

b) Costs less

c) Both a) and b)

Q6. How many nominees can you have on your insurance policy?

a) As many as you wish

b) One;

c) Two

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