📊 Practice daily MCQs to improve your finance knowledge.
Q1. What is insurance?
A. Investment plan
B. Risk protection
C. Loan system
D. Saving account
Answer: B
Explanation: Insurance is a financial product that provides protection against financial loss or risk.
Q2. What is the main purpose of insurance?
A. Profit generation
B. Risk coverage
C. Tax saving only
D. Loan repayment
Answer: B
Explanation: The main purpose of insurance is to provide financial protection against unexpected events.
Q3. Which of the following is a life insurance company in India?
A. SBI
B. LIC
C. RBI
D. NSE
Answer: B
Explanation: LIC (Life Insurance Corporation of India) is a major life insurance provider in India.
Q4. What is premium in insurance?
A. Profit
B. Bonus
C. Amount paid for policy
D. Loan
Answer: C
Explanation: Premium is the amount paid by the policyholder to the insurance company.
Q5. What is policy term?
A. Interest rate
B. Duration of insurance
C. Premium amount
D. Loan period
Answer: B
Explanation: Policy term is the duration for which the insurance coverage is provided.
Q6. What is claim in insurance?
A. Investment
B. Request for compensation
C. Premium payment
D. Tax
Answer: B
Explanation: A claim is a request made to the insurance company for compensation of loss.
Q7. Which insurance covers health expenses?
A. Life insurance
B. Health insurance
C. Vehicle insurance
D. Travel insurance
Answer: B
Explanation: Health insurance covers medical and hospitalization expenses.
Q8. Which insurance is mandatory for vehicles in India?
A. Life insurance
B. Health insurance
C. Motor insurance
D. Travel insurance
Answer: C
Explanation: Motor insurance is mandatory for vehicles in India as per law.
Q9. What is nominee in insurance?
A. Agent
B. Policyholder
C. Beneficiary
D. Broker
Answer: C
Explanation: Nominee is the person who receives the claim amount after the policyholder’s death.
Q10. What is sum assured?
A. Premium
B. Loan
C. Fixed amount paid on claim
D. Bonus
Answer: C
Explanation: Sum assured is the guaranteed amount paid by the insurer on maturity or claim.
👉 Check Mutual Fund MCQs– Top 10 Banking MCQs
💬 Question for you:
Which insurance do you think is most important for beginners — life, health, or vehicle insurance?
👇 Comment your answer below!