Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Defined contribution scheme: in this scheme, a certain amount is contributed regularly towards the pension fund.
Defined benefit scheme: in this scheme the pension that an employee will receive after retirement is predetermined.
If the employer deducts an amount of premium from the salaries of employees, it is known as contributory insurance plan. In a non-contributory plan the employer pays the entire amount of premium.
the investment risks in ULIPs are borne by the policyholder / investor and not by the insurance company.
ULIPS can be referred as mutual funds with insurance cover. As in mutual funds, in ULIPs too investors are allotted units, by the insurance company and a NAV is declared on a daily basis.
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