Top 20 Life Insurance Interview Questions & Answers For Freshers

Ans: Insurance coverage insurance policies are of two varieties: 

• Basic or non-life insurance coverage
• Life insurance coverage

3. What's Meant by Beneficiary?

Ans: The beneficiary is the one that will get nominated for the insured quantity in case the policyholder dies. 

4. What do you Imply by ‘Insured’ and ‘Insurer’?

Ans: The insurer is the occasion within the insurance coverage contract enterprise to pay compensation. The insured is the one who holds the coverage and the insurer covers the identical. 

5. What's the Distinction Between ‘Irrevocable Beneficiary’ and ‘Revocable Beneficiary’?

Ans: ‘Irrevocable beneficiary’ is a designation during which the policyholder should take the beneficiary’s consent earlier than altering the beneficiary’s identify. Alternatively, a revocable beneficiary permits the policyholder to alter the beneficiary identify with out getting the named beneficiary’s consent. 

6. What do you Imply by the Contestable Interval in an Insurance coverage Coverage?

Ans: Contestable interval refers back to the period during which the insurance coverage firm holds all the appropriate to research the required coverage and decide whether or not they need to pay or not pay the insured. This era normally lasts for a 12 months or two. 

Difficult Life Insurance coverage Interview Questions

7. What's a ‘Deductible’?

Ans: Deductible is among the many clauses an insurance coverage firm makes use of as a threshold for the coverage fee for journey or medical health insurance. It's a determined quantity that you have to pay out of your pocket whenever you declare the insurance coverage. For instance, if the deductible is INR 25,000 and you've got insurance coverage protection of INR 1,00,000, you would need to pay INR 25,000 out of your pocket and the insurance coverage firm will cowl the remainder of the INR 75,000. 

8. What's a No-Declare Bonus?

Ans: No-claim bonus refers to a profit insurance coverage firms provide to those that haven’t claimed insurance coverage in the course of the previous 12 months of canopy. It lowers the premium for the next 12 months. 

9. What do you Imply by Co-Insurance coverage?

Ans: Co-insurance is a coverage normally provided by medical health insurance firms. On this coverage, you share the protection with the insurance coverage coverage in a proportion of the coverage worth after the deductible. Often, the cut up is 80%/20% the place the policyholder has to pay 20% whereas the insurance coverage firm pays the 80% of the coated quantity.

Suppose you might have claimed medical health insurance for INR 20,000 and it requires a deductible of INR 10,000. After paying the deduction, the remaining quantity is INR 10,000 and the co-insurance is 80/20. Now you’d should pay INR 2,000 out of your pocket and insurance coverage can pay INR 8,000. 

10. What's a Loss Payee?

Ans: Loss payee is an establishment or person who receives the insurance coverage fee for the lack of a automobile or property you personal. Within the occasion of fee being made beneath the coverage in relation to the insured, it will go to the third occasion moderately than to the beneficiary of the identical. For instance, in the event you had auto insurance coverage of a automotive you obtain on mortgage and the automotive crashed throughout the mortgage’s fee period, the cash would go to the lender moderately than you. 

11. What do you Imply by Give up Worth?

Ans: Give up worth, also called money worth or money give up worth is the financial quantity the policyholder will get from the life insurance coverage firm in the event that they determine to exit the identical earlier than it reaches the maturity date. A standard premium coverage would purchase give up worth if the policyholder has paid its premium for 3 years regularly. The coverage ceases as quickly because the policyholder withdraws the quantity and so they would possibly lose all of the returns on the coverage. 

12. How do you Declare an Insurance coverage Coverage?

Ans: To assert an insurance coverage coverage, you first should replenish the declare type and phone the monetary advisor from whom you bought the coverage. After finishing these steps, you need to present the required paperwork such because the fee receipt. When all the things is verified and deemed fantastic, you'll get your insurance coverage declare inside seven days of your claiming date. 

Additionally Learn: Banking Job in India 

13. What do you Imply by Paid Worth?

Ans: The paid worth is the diminished assured quantity the insurance coverage firm pays if the policyholder stops paying premiums after a selected period. In easy phrases, when an individual stops paying premiums after a selected period, the coverage stays however with a decrease assured quantity, this low quantity known as paid worth or paid-up worth.

The quantity the insurance coverage firm assures to pay reduces if the individual claims the paid-up worth. The discount will depend on how quickly earlier than the maturity interval has the individual requested the paid worth. 

14. What Occurs If a Individual Doesn’t Pay Premium Funds?

Ans: In regular instances, if an individual stops paying premiums, the insurance coverage firm provides them 10-15 days as a grace interval after the due date. Nonetheless, if the individual doesn’t pay even within the grace interval, their coverage lapses. After that period, the individual must pay the due premium together with curiosity charged on the premium because the due date to revive the coverage. 

Alternatively, if the individual paid premium funds for a considerable period (2-3 years minimal) after which they cease paying the premium, the Insurance coverage firm will deduct the premium from the accrued sum. That is significantly frequent with everlasting life insurance coverage insurance policies. It continues till the accrued funds deplete after which the corporate terminates the coverage. 

Superior Life Insurance coverage Interview Questions

15. Are you able to Differentiate Between a Taking part Coverage and a Non-Taking part Coverage?

Ans: In a taking part coverage, the insurance coverage firm shares its producing revenue with the policyholder and offers them dividends whereas in a non-participating coverage, the corporate doesn’t give any earnings to the policyholder. 

16. Can a Beneficiary Declare the Coverage if the Policyholder has been Lacking for A number of Years?

Ans: Sure, a beneficiary can declare the coverage however there are a couple of circumstances they need to meet. First, they should have a court docket declaration stating that the policyholder has been lacking or introduced legally lifeless. Second, the individual should have been lacking for greater than seven years. 

17. Can a Individual Restrict the Premium Funds for a Smaller Quantity of Years than the Coverage’s Period? 

Ans: Some insurance coverage firms provide the choice the place the individual has to pay premium funds in three, 5, seven, or ten years in accordance with their earnings and obtain the entire protection they'd have acquired with the same old period. 

18. Can a Individual Pay the Premium By way of an Insurance coverage Agent? If that's the case, is it Secure to do So? 

Ans: Sure, an individual pays the premium by their agent in the event that they make the fee by cheques to their Insurance coverage firm and obtain all of the receipts for such funds. 

19. What's a Basic Insurance coverage Coverage and What Does it Cowl? 

Ans: Basic insurance coverage insurance policies are also called non-life insurance coverage insurance policies and provide funds based mostly on the loss from a selected monetary occasion. They're typically outlined as any insurance coverage that's not a life insurance coverage coverage. A number of the issues it covers are authorized liabilities, journey, private property (home or automotive), accident, well being, equipment breakdown, theft, and so on. 

20. Can a Individual Take Two Life Insurance coverage Insurance policies and Declare For Each?

Ans: Sure, an individual can take two life insurance coverage insurance policies and declare for each of them. 

Easy methods to Put together Life Insurance coverage Interview Questions and Solutions

One of the simplest ways to organize life insurance coverage interview questions and solutions could be by studying in regards to the discipline. With a deep understanding of the assorted sections of life insurance coverage, you'll be able to simply bag a profitable function on this sector. 

When you’re fascinated by studying extra about this discipline, we suggest taking a life insurance coverage course. It might train you the required abilities required to develop into a life insurance coverage skilled by unique coaching and mentorship. 

At upGrad, we provide the next three programs:

You may choose any one among these programs and kick begin your insurance coverage profession. 

Conclusion

We hope that you simply discovered our article on life insurance coverage interview questions and solutions helpful. 

We all know how difficult it may be to organize for an interview, nonetheless, keep in mind that it’s not a herculean activity. Keep assured and provides direct solutions to any questions. Though many individuals get nervous throughout interviews, keep in mind that it’s quite common and recruiters know that. 

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