Vidyalelo
Commerce · Q414

Insurance

Graduate and Post Graduate · Commerce · question 414

Q414

Who among the following is best advised to purchase a term plan?

A.
An individual who needs money at the end of insurance term
B.
An individual who needs insurance and has a high budget
C.
An individual who needs insurance but has a low budget
Answer
D.
An individual who needs an insurance product that gives high returns

Answer: Option C

Solution

Answer: Option C
Solution:
An individual who needs insurance but has a low budget is advised to purchase a term plan. Term plans are beneficial for those who want higher coverage at low premium rates, providing financial protection for their family in case they are not around.