Question

What is the primary characteristic of a Term Insurance plan?

a.

It provides both death cover and savings element.

b.

It only provides death cover.

c.

It is an investment avenue.

d.

It is suitable for long-term financial planning.

Posted under IC 89 Management Accounting

Answer: (b).It only provides death cover. Explanation:Term Insurance plans provide only death cover. If the insured does not die within the specified period, no payment is made under term insurance.

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