Which of the following charges is NOT typically deducted from the premium in a ULIP?

easy Q2 of 15

Insurance Awareness - Life Insurance - LIC

AMortality charge

BSurrender charge

CPolicy administration charge

DFund management charge

Step-by-Step Solution

Step 1: Identify charges in ULIPs
ULIPs deduct mortality charge, fund management charge, and policy administration charge from premiums or fund value.
Step 2: Understand surrender charge
Surrender charge is levied when the policyholder surrenders the policy, not deducted from the premium.
Final Answer:
Surrender charge → Option B
Quick Check:
Surrender charges apply on policy exit, not on premium deduction.

Quick Trick: Surrender charge applies on exit, not on premium payment.

Common Mistakes:

MISTAKES

Master "Life Insurance - LIC" in Insurance Awareness

Start learning the concept with an interactive lesson.

Want More Practice?

15+ quiz questions · All difficulty levels · Free

More Insurance Awareness Quizzes