Question

What is the characteristic of Term Insurance plans?

a.

They provide living benefits

b.

They cover the entire lifetime of the insured

c.

They spread the cost of insurance cover over a longer period

d.

They provide coverage only if the insured dies within a specified period

Posted under IC 89 Management Accounting

Answer: (d).They provide coverage only if the insured dies within a specified period Explanation:Insurance plans providing only death cover are called Term Insurance, and no payment is made under term insurance if the insured does not die within the specified period.

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Q. What is the characteristic of Term Insurance plans?
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