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Commerce · Q413

Insurance

Graduate and Post Graduate · Commerce · question 413

Q413

What is the primary purpose of a life insurance product?

A.
Tax rebates
B.
Safe investment avenue
C.
Protection against the loss of economic value of an individual’s productive abilities
Answer
D.
Wealth accumulation

Answer: Option C

Solution

Answer: Option C
Solution:
Protection against the loss of economic value of an individual’s productive abilities is the primary purpose of a life insurance product. The primary purpose for purchasing life insurance is to provide financial stability to beneficiaries in the event of the insured's death.