ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide them with a way of protecting their assets, like savings and investments
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To replace the lost income to their families or dependents after they die
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To pay for final expenses, like funerals, burial costs, and medical bills
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All of the above
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Detailed explanation-1: -Reasons to invest in life insurance. Life insurance lessens the financial problems your loved ones might run into if an unfortunate event occurs with you. But this is not the only benefit of life insurance. Many life insurance products also offer investment options.
Detailed explanation-2: -Why is life insurance important? Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.
Detailed explanation-3: -Provides Tax Benefits Insurance policies provide tax benefits under section 80C of the Income Tax Act. An individual subscribing to the policy is eligible for a maximum tax benefit of Rs 1.5 lakhs. This makes it extremely attractive for people, as everyone is eager to save as much tax as possible.
Detailed explanation-4: -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.