ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Life insurance benefits can help replace your income if you pass away. This means your beneficiaries could use the money to help cover essential expenses, such as paying a mortgage or college tuition for your children. It can also be used to pay off debt, such as credit card bills or an outstanding car loan.

Detailed explanation-2: -Child life insurance is generally offered in the form of term or whole life insurance. Term life insurance provides coverage for a set amount of time while whole life insurance provides coverage for the entirety of one’s life.

Detailed explanation-3: -Life insurance is important because it provides financial security to the family in case of the unfortunate death of the policyholder. Life insurance can enable the family of the policyholder to stay financially independent so that they do not have to compromise their lifestyle.

Detailed explanation-4: -You may want multiple life insurance policies if your current term life policy would only cover a portion of your final expenses. You can supplement your term policy with final expense insurance to ensure your family won’t have to worry about paying for your funeral and other end-of-life expenses.