Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Value of an individual's investment = Number of units held X NAV
Offer price: when a new policyholder decides to invest in a fund, then the NAV on that day used for allotting the units to him, is known as offer price.
Bid price: when an existing policyholder decides to redeem the units, then the NAV on that day used for redeeming the units is known as bid price.
When an existing policyholder decides to redeem the units from ULIP, then the NAV that is used to redeem the units is known as bid price.
Redirection: if a policyholder wants to invest his fresh premium in a fund other than his existing fund it is known as redirection.
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