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LIC ADO Interview Questions & Answers, Top 30 Commonly Asked Questions

LIC ADO Interview Questions & Answers

In today’s era, maximum number of people wants to access in Life Insurance Corporation of India but to get a job in is not an easy task. Here we have presented Best LIC ADO Interview Questions & Answers that will prove productive for our readers.

In addition to these previously requested questions, we are also offering the probable questions those are to be experienced by the applicants. Candidates can also download the free PDF file through online mode of Top 30 Commonly Asked Questions.

Commonly Asked Interview Questions for LIC ADO Position

Candidates after qualify written examination can check LIC ADO Interview Questions & Answers through below section of this page which is well created by the team members of

LIC ADO Interview Questions & Answers

Individual who were previously got rejected because of the wrong answers they spoke in front of the interviewer. Did you ever wonder, what are the expected answers that interviewers want to hear? Well, we will give you a brief description on the same matter.

Also Check- LIC ADO Sample Paper

Top 30 Commonly Asked LIC ADO Interview Questions

Question1: Name some different Categories of life insurance products?

Answer: Life insurance products come in a variety of offerings catering to the investment needs and objectives of different kinds of investors. Following is the list of broad categories of life insurance products:

  1. Term Insurance Policies:
  • The basic premise of a term insurance policy is to secure the immediate needs of nominees or beneficiaries in the event of sudden or unfortunate demise of the policy holder.
  • Term insurance policies are also relatively cheap to acquire compared to other insurance products.
  1. Endowment Policies:
  • This basically falls into the category of an insurance-cum-investment product.
  • Unlike a regular term insurance policy, an endowment plan provides returns on investment at the end of the policy term.
  • There are several varieties of endowment plans, and the rate of returns and the type of benefits can vary based on the kind of endowment plan an individual has opted for.
  • With an endowment plan, a persona can opt for insurance products that provide both the benefit of insurance as well as investment.
  1. Money-back Policies:
  • Money back policies are basically an extension of endowment plans wherein the policy holder receives a fixed amount at specific intervals throughout the duration of the policy.
  • In the event of the unfortunate death of the policy holder, the full sum assured is paid to the beneficiaries.
  1. Unit-linked Insurance Policies (ULIP):
  • Unit linked insurance policies again belong to the insurance-cum-investment category where one gets to enjoy the benefits of both insurance and investment.
  • While a part of the monthly premium pay-out goes towards the insurance cover, the remaining money is invested in various types of funds that invest in debt and equity instruments.
  • ULIP plans are more or less similar in comparison to mutual funds except for the difference that ULIPs offer the additional benefit of insurance.
  1. Pension Policies:
  • Pension policies let individuals determine a fixed stream of income post retirement.
  • This basically is a retirement planning investment scheme where the sum assured or the monthly pay-out after retirement entirely depends on the capital invested, the investment time frame, and the age at which one wishes to retire.

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Question2: Who can buy a Insurance Policy?


  • Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.
  • Policies can also be taken, subject to certain conditions, on the life of one’s spouse or children.
  • While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent’s income and other relevant factors are considered by the Corporation.

Check- Interview Questions and Answers

Question3: What are the Objectives of LIC?


  • Spread and provide life insurance to the masses at a reasonable cost.
  • Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.
  • Meet the various life insurance needs of the community that would arise in the changing social and economic environment.
  • Act as trustees of the insured public in their individual and collective capacities.
  • Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.

Question4: When was the LIC of India came into existence ?

Answer: 1956

Question5: Foreign Direct Investment (FDI) limit in Insurance Sector?

Answer: First there is 26% limit but now it has increase to 49%.

Must Know- Common Interview Mistakes

Question6: What are the Duties, powers and functions of IRDA?


  • issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
  • promoting efficiency in the conduct of insurance business;
  • protection of the interests of the policy holders in matters concerning assigning of policy,
  • specifying the code of conduct for surveyors and loss assessors;
  • specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector;

Question7: What is the difference between Marketing and Sales?

Answer: Marketing and Sales are important aspects in business. Both are inevitable activities in any organization.


  • Marketing is considered to be a wider term than sales. It includes identifying customers, producing innovative products, branding, advertising, public relations, sales, etc. Thus, sales are just a stage or an activity of marketing.
  • Marketing is the process of creating demand for a product in the market whereas sales are refers to fulfilling these demands.
  • Marketing helps the organization to create a brand image of the product or service in the minds of the people while sales involves the selling of that product or service.
  • Marketing is an indirect activity whereas sales are a direct activity.
  • Marketing targets a large group or the general public. Sales on the other hand targets individuals.

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Question8: How many types of Insurance companies are there?

Answer: It can be classified into two parts:

  • General Insurance Companies
  • Life Insurance Company

Question9: How would you improve upon our product/ company?

Answer: This question is asked by the panel to analyze your abilities. Give the answer like having work properly with product team I understand how the research for product is performed, this will help in improving the things and making the product & company better.

Question10: Why are you the best person for this position?

Answer: Think of your most amazing and exclusive strong points that closely relate with the job role and use those to message yourself in a way that clearly demonstrates the expertise set and features you offer.

Question11: What is the difference between with profit and without profit plans?

Answer: An insurance policy can be ‘with’ or ‘without’ profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

In ‘without’ profit plan the contracted amount is paid without any addition. The premium rate charged for a ‘with’ profit policy is therefore higher than for a ‘without’ profit policy.

Question12: How would you bring improvement upon our company or product?

Answer: You have the required qualification and work experience to withstand the responsibility of this particular job profile and that with the experience, you can bring prosperity, and growth in business to the company is what the answer should be.

Question13: What is Keyman Insurance?

Answer: Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

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Question14: Who is the Present Chairman of LIC and IRDA?


  • Chairman of LIC- S K Roy
  • Chairman of IRDA- T S Vijayan

Question15: What is the FDI limit for Insurance Sector?

Answer: 49%

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Question16: Tell us something about yourself?

Answer: Mostly asked and most important to answer in a proper way. You reply must include background, educational, skills and abilities, etc.

Question17: Why do you want to join LIC ADO or LIC AAO?

Answer: Show your eagerness for ding job in LIC. Be confident and do some research on LIC so you can mention some points for LIC.

How to Answer: Confusing Interview Questions

Question18: Tell us about your family?

Answer: In this you just only have to tell about your family background no extra things about them. Be honest while answering to such questions.

Question19: What do you know about Life Insurance?

Answer: Life insurance is an agreement between the policy holder and the insurer. The insurer approves to compensate the incidence of the insured individual’s death or additional event like terminal illness or critical illness. The insured agrees to fee the charge in terms of cover premium for the service.

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Question20: What do you mean by word Insurance?

Answer: Insurance means assurance of payment for any probable future losses. It aids financial protection against by returning losses during disaster. Many different insurance companies are offering wide range of insurance options these days.

Question21: What are types of Insurance?

Answer: There are few types of insurance:

  • Life insurance
  • Automobile insurance
  • Health insurance
  • Credit insurance
  • Property insurance

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Question22: Do you know the role of LIC ADO/AAO?

Answer: You can tell about the role of LIC ADO/ AAO only if you have researched about it before going for interview. So, you have to do research about the LIC past, and also for the job profile you applied.

Question23: How many types of Insurance companies are there?

Answer: It can be categorized into two:

  • General Insurance Companies- They provides all type of Insurance apart from life insurance.
  • Life Insurance Company- It deals with life insurance, pension products and allowances.

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Question24: Do you know where the corporate office or head quarter of LIC located?

Answer: It is in Mumbai.

Question25: What are duties and functions of IRDA?

Answer: Some of the duties of IRDA include:

  • Concern to the applicant a certificate of recording, renew, modify, withdraw, suspend or revoke such registration.
  • Promoting effectiveness in the bearing of insurance business.
  • Security of the benefits of the policy owners in matters concerning assigning of policy.
  • Identifying the code of conduct for reviewers and loss assessors.
  • Stating the percentage of life insurance business and general insurance business to be accepted by the insurer in the rural or social sector.

Question26: Do you explain who can buy a Policy?

Answer: Any individual who has accomplished greater part and is qualified to start a real agreement can guarantee himself/herself and those in whom he/she has insurable attention. Guidelines can also be taken, topic to certain circumstances, on the lifestyle of one’s partner or children.

Question27: Do you know the role of LIC ADO/AAO?

Answer: To give the answer of this question you have to need researched about the ADO functioning. So, you have to do analysis about the LIC, and also for the job for which you have applied.

Question28: How many types of Insurance companies are there?

Answer: Insurance companies can be categorized into two main divisions which are as follows:

  • General Insurance Companies: They provide all types of insurance apart from life insurance.
  • Life Insurance Companies: The companies, dealing with life insurance, pension products and annuities are life insurance companies.

Question29: What is the Role of Development Officer?


  • To guide, supervise and direct the activities of the Agents placed under your supervision by the Corporation.
  • To introduce suitable persons to the Corporation for Appointment as new Agents.
  • To act generally in such a way as to activise existing Agents and motivate new
  • Agents, so as to develop a stable agency force.

Check Also- LIC ADO Sample Paper 

Question30: What is the difference between Life Assurance and Life Insurance?


  • Life Insurance insures you for a specific period of time.
  • Then if you die at the same time as the policy is in force, the insurance company pays the claim.
  • However, if you survive to the end of the term, the policy is finished and has no lasting value whatsoever. Even at the same time as the Life Insurance policy is in force it only has any value if you have a claim – in that context it’s just like your home insurance!
  • Life Insurance is much cheaper than Life Assurance and, in our experience, Life Insurance is what most people need.

LIC ADO Previous Years Papers

For getting position in LIC as Apprentice Development Officer first of all candidates need to qualify the written test for it. Applicants can go through below mentioned PDF which are provided for the ease of our readers.

So, candidates can select suitable link and go through the questions that are asked in previous years. By solving these question individual will also come to know about its performance for upcoming exams.

ExamDownload PDFs
Exam 1Download PDF
Exam 2Download PDF
Exam 3Download PDF
Exam 4Download PDF

Final Words:

We hope that above stated LIC ADO Interview Questions & Answers will be beneficial for you to prepare well for the interview round. To get more updates like this you can bookmark this web page or subscribe to our free mail services.

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