BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The policy only pays a death benefit
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The policy builds a cash value
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The policy provides coverage for a lifetime
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The policy is available to all consumers
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Detailed explanation-1: -It is not meant to be used as an investment instrument. Thus, it does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure. However, the very absence of this investment component makes term plans so affordable.
Detailed explanation-2: -The cheapest type of life insurance is term life insurance. It is the most straightforward and affordable form of coverage. However, it is only in force for a certain period. If you want guaranteed death benefit coverage for a lifetime, whole life insurance is a better choice.
Detailed explanation-3: -Term insurance plans unlike money-back plans, do not have a fund that needs to be invested and monitored. Hence, there are no portfolio or money management related expenses. This allows insurance companies to offer term insurance plans at highly competitive premiums.
Detailed explanation-4: -The cheapest life insurance for you will likely depend on your health metrics and coverage needs. However, in general, term life insurance is often the cheapest choice for many shoppers.
Detailed explanation-5: -Cheap premium payment: The premium payment for a term insurance plan is cheaper as compared to life insurance plans. This ensures that you can provide financial security to family-members in the case of an unfortunate eventuality by paying affordable premiums.