IIQE Paper 5 Introduction to Investment-linked Long Term Insurance Policies question: benefits under linked long term business

Answer: C. the value of, or income from, property, or an index of its value

Answer: the value of, or income from, property, or an index of its value. The IO definition ties the benefits to the value of property, the income from it, or fluctuations in its value or in an index of that value.Why not the others:• a fixed sum assured guaranteed when the policy starts: A fixed, guaranteed benefit is a feature of traditional life policies; linked benefits move with property values.• the age and health of the life insured at the date of claim: Age and health affect underwriting and cost of cover; they do not define how linked benefits are measured.• the bonus rate the insurer declares each year for participating policies: Declared bonuses belong to traditional participating policies, not to the definition of linked business.Watch out: Reading 'linked' as linked to the insurer's bonus declarations; the link is to property values or an index.Rule: Linked long term business: life or annuity contracts whose benefits are set by the value of, or income from, property, or by movements in its value or an index.Source: IA Investment-linked Long Term Insurance Examination Study Notes, 2024 Edition (7th ed., Nov 2024; for exams from 17 Feb 2025), 1.1, p. 1/1