CHAPTER 8

1) Which of the following cannot be termed as a clients need for insurance

Provide sufficient funds for dependants in case of the premature death of the family income
provider
Save funds for retirement
Build a contingency fund to take care of any emergencies tht may arise
Build a contingency fund to take care of any emergencies that may arise
2. Determine the orer in which the gent should go about before recommending suitable insurance
product to the client a) Identifying needs b) Prioritising needs c) Quantifying needs
a-b-ca-c-b
b-c-a
b-a-c3) Which of the following information is not collected and analysed tby the agent to identify the needs
of the client
Marital status
Details of health status and heredity medical conditions
Existing protection, savings and retirement provision for uncle and aunty
Number and age of dependants
4) Why is prioritizing the clients need Important
Help the client to determine which investments can be deferred
their investments capacity maybe limited

Both 1 & 2

None of above

5) What is the most important need every parents would want to give top priority to
Investment towards their childrens future

Investment towards their travel expenses

Provision for good clothes for the child

Provision for good food for the child

6) What Insurance would not be suggested for a double income no kids DINK couple
Term Insurance

Childrens Plan

ULIP

Endowment

7) __________ for their childrens future is an important need that every parent will want to give top
priority to
Protection

Risk cover

Investment

Surplus

8) Young unmarried with no dependants needs ____________ low

Protection

Returns

Investments

9) Young married with dependants needs to

Protect individual at low

Protect their income

Needs life protection with future

Protect retirement life

Surplus

10) Young married with no children- Single income family couple needs to
Protect individual at low

Protect their income

Needs life protection with future income

Protect retirement life

11) Young married with children Double income family couple needs to
Protect individual at low

Protect their income

Needs life protection with future income

Protect retirement life

12) Married with older children needs to

Protect their income

Needs life protection with future income

Needs to cover the cost of higher education and the marriage of their children
Protect retirement life
13) During pre- retirement stage, the person needs
Protect their income

Needs life protection with future income

Needs to cover the cost of higher education and the marriage of their children
Protect retirement life
14) The process of needs by an insurance agent is a)Identification of real needs b) Identification of
current and future needs c) Quantification and prioritization of needs d) Financial planning review
a,c,b,d

a,b,c,d

a,d,c,b

a,d,b,c

15) Where do you see yourself 10 years from now This question is
Open ended

Closed ended

Based on purpose

None of above

Based on purpose

None of above

16) Are you currently employed This question is

Open ended

Closed ended