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Commerce · Q269

Insurance

Graduate and Post Graduate · Commerce · question 269

Q269

Which of the following statements is incorrect?

A.
Term insurance can be taken as a standalone policy
B.
Term insurance cannot be taken as a rider
Answer
C.
Term insurance policies are sold by life insurance companies
D.
Term insurance policies provide cover for a fixed period

Answer: Option B

Solution

Answer: Option B
Solution:
A rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional costs. So, term insurance cannot be taken as a rider.