Question

Why is life insurance often compared to financial products?

a.

Life insurance contracts are purely for wealth protection and do not involve savings.

b.

Life insurance contracts offer a guaranteed high rate of return.

c.

Some life insurance products have a significant savings component, making them a form of wealth holding.

d.

Life insurance policies are free from income tax obligations.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).Some life insurance products have a significant savings component, making them a form of wealth holding. Explanation:Life insurance is often compared to financial products because some life insurance products have a significant savings component, which can serve as a form of wealth holding in addition to providing protection. This makes them more akin to financial products with investment elements.

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Q. Why is life insurance often compared to financial products?
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