Question

Why do parents apply for insurance on the lives of their children?

a.

To get insurance at high cost when children have poor health

b.

To pass on the wealth to the future generation

c.

To minimise moral hazard

d.

None of the above

Answer: (b).To pass on the wealth to the future generation Explanation:Parents apply for insurance on the lives of their children for various reasons, one of which is to pass on the wealth to the future generation. This implies that parents want to secure the financial future of their children

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Q. Why do parents apply for insurance on the lives of their children?

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