DBFI403 LIFE INSURANCE MANAGEMENT

Description

SESSION	JUL-AUG_2025
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	IV
COURSE CODE & NAME	DBFI403 LIFE INSURANCE MANAGEMENT

 

 

 

Assignment Set – 1

 

 

Q1. What is Whole Life Insurance? Explain the same mentioning the variations of Whole Life Insurance schemes. 2+8 

Ans 1.

Whole Life Insurance

Whole Life Insurance is a type of life insurance plan that provides coverage for the insured’s entire lifetime rather than a fixed term. Unlike term insurance, which expires after a defined period, a whole life policy remains in force until the death of the policyholder, provided premiums are paid regularly. The primary objective of whole life insurance is to offer lifelong protection, financial security for dependents, and stable long-term savings through the accumulation of cash value. Premiums are generally level throughout the policy term, and part of the premium contributes to building a guaranteed cash value, which grows over time. This makes whole

 

 

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Q2. Explain the major settlement options.  10       

Ans 2.

Explain the Major Settlement Options

Settlement options refer to the different ways in which the benefit from a life insurance policy—generally the death benefit or maturity amount—can be paid to the beneficiary. These options ensure flexibility so that the policy proceeds can meet the financial needs of the family over time. Insurance companies provide multiple structured payout methods, allowing beneficiaries to choose the most suitable option based on their income requirements, debt obligations

 

 

 

Q3. “The profits generated are distributed as bonuses to the eligible policyowners at the end of every financial year.” Explain the statement with mentioning the types of bonuses in Insurance. 10   

Ans 3.

Profit Distribution as Bonuses & Types of Bonuses in Life Insurance

Life insurance companies offering participating or “with-profits” policies share a portion of their surplus with eligible policyholders in the form of bonuses. The statement “The profits generated are distributed as bonuses to the eligible policyowners at the end of every financial year” refers to how insurers allocate their surplus arising from investment income, mortality savings, and operational efficiencies. Bonuses enhance the sum assured and boost policy value without requiring additional premium payments from policyholders.

How Bonuses

 

Assignment Set – 2

 

 

Q4. What is a Life Insurance Claim? Explain the three types of it in detail        2.5+7.5

Ans 4.

Life Insurance Claim

A life insurance claim is a formal request made by the beneficiary or policyholder to an insurance company seeking the policy benefits after the occurrence of an insured event. In the case of death claims, the nominee submits documents such as the death certificate, claim form, and policy papers to receive the sum assured. In maturity claims, the policyholder receives the benefit upon completion of the policy term. Claims ensure that the financial protection

 

Q5. Explain the reasons of Reinsurance.    10       

Ans 5.

Reasons for Reinsurance

Reinsurance refers to the practice where an insurance company transfers a portion of its risk to another insurer, known as the reinsurer. This helps the primary insurer reduce exposure to large losses, stabilise financial performance, and strengthen underwriting capacity. Reinsurance forms a critical pillar of global insurance operations and enhances overall market stability.

1. Risk Spreading and Diversification

One of

 

Q6. Write a detailed note on functions performed by Agents in Insurance. 10 

Ans 6.

Functions Performed by Agents in Insurance

Insurance agents play a central role in bridging the gap between insurance companies and policyholders. They act as the face of the insurer and are responsible for promoting products, acquiring new customers, providing advisory services, and ensuring smooth policy servicing. Their functions are critical to the growth of the insurance sector and to maintaining customer trust.