n NISM Certifications
V-A NISM Series V-A
Medium

For those investors who find it difficult to pay for insurance cover, a Money back policy is recommended - State True or False?

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

A money-back policy provides regular payouts during the policy term and is best for those needing periodic income, not for those who find it hard to pay for insurance. It may not be the best solution for individuals who struggle with premium payments, as it can be more expensive compared to other types of insurance.

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