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Commerce · Q410

Insurance

Graduate and Post Graduate · Commerce · question 410

Q410

Which of the below option is correct with regards to a term insurance plan?

A.
Term insurance plans come with life-long renewability option
B.
All term insurance plans come with a built-in disability rider
C.
Term insurance can be bought as a stand-alone policy as well as a rider with another policy
Answer
D.
There is no provision in a term insurance plans to convert it into a whole life insurance plan

Answer: Option C

Solution

Answer: Option C
Solution:
Term insurance can be bought as a stand-alone policy as well as a rider with another policy. Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.