Question

What best describes the nature of an insurance product?

a.

A tangible product one can see and feel

b.

A promise between an insurer and a policyholder

c.

A perishable good consumed for daily use

d.

A utility product producing happiness and entertainment

Answer: (b).A promise between an insurer and a policyholder Explanation:An insurance product is essentially a promise or a legal agreement sold by an insurer to a policyholder, stipulating the payment of benefits upon the occurrence of specified events, such as death. Unlike tangible products, it cannot be seen or felt physically but serves as a significant financial security tool.

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Q. What best describes the nature of an insurance product?

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