Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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The premium paid by the insured in a ULIP is divided into 3 parts: Expenses, Mortality, Investment
a portion of the premium goes towards meeting the expenses of issuing a policy- like agent's commission, policy set up costs, administrative costs and statutory levies. This amount is also known as 'Policy Allocation Charge (PAC)'
ULIPs have a lock in period of 5 years
Top-up: individuals are allowed to invest additional amount of money over and above the regular premium that they are paying
The policyholder has the choice of transferring his money from one fund to another e.g. equity to debt or vice versa. This process in known as Switching.
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