Vidyalelo
Commerce · Q636

Insurance

Graduate and Post Graduate · Commerce · question 636

Q636

Term Policy is ideally suited for

A.
One who needs periodical sums of money in his life?
B.
One who has a high insurance budget
C.
One who has a low insurance budget
Answer
D.
One who looks for high returns

Answer: Option C

Solution

Answer: Option C
Solution:
Term Policy is ideally suited for One who has a low insurance budget. Term life insurance, also known as pure life insurance, is life insurance that guarantees payment of a stated death benefit during a specified term. Once the term expires, the policyholder can either renew for another term, convert to permanent coverage, or allow the policy to terminate.