Question

What is the key characteristic of Term Insurance?

a.

It has a savings element or cash value.

b.

It provides coverage for a fixed rate of payments for a fixed period of time.

c.

It is primarily used for investment avenues.

d.

It is suitable for portfolio management.

Posted under IC 89 Management Accounting

Answer: (b).It provides coverage for a fixed rate of payments for a fixed period of time. Explanation:A key characteristic of Term Insurance is that it provides coverage at a fixed rate of payments for a fixed period of time.

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