Vidyalelo
Commerce · Q622

Insurance

Graduate and Post Graduate · Commerce · question 622

Q622

What is the essential purpose of Life Insurance?

A.
It is tax rebates
B.
It is a good investment
C.
It is protection for loss of economic value of human life in the event of death or disability
Answer
D.
It leads to wealth accumulation

Answer: Option C

Solution

Answer: Option C
Solution:
The essential purpose of Life Insurance is protection for loss of economic value of human life in the event of death or disability. The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.