Question

What is the primary purpose of a life insurance policy?

a.

Providing investment returns

b.

Providing financial assistance to the insured and their dependents

c.

Accumulating wealth over time

d.

Ensuring a fixed income after retirement

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Providing financial assistance to the insured and their dependents Explanation:A life insurance policy is primarily meant to provide financial assistance to the insured and their dependents in the event of the insured's death.

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Q. What is the primary purpose of a life insurance policy?
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