The correct answer is “C”. Insurance is a product created by the financial system in order to secure an asset or condition. The insurance company will cover for expenditures related to the assured object once the need is triggered by a particular circumstance.

Which term best describes term life insurance?

The following best describes term life insurance: The insured pays a premium for a specified number of years. The following best describes term life insurance: The insured pays a premium for a specified number of years.

What is the meaning of term insurance?

Term insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. The benefit amount is paid out to the nominee in case of death of the person insured during the term of the policy.

Which statement best describes the term premium?

Terms in this set (11) Which statement best defines the term premium? It is a fee paid to an insurance company to purchase coverage.

Which term describes the practice of paying a sum of money as compensation for loss?

Indemnity describes the practice of paying a sum of money as compensation for loss.

Which is a reason a person might decide not to purchase insurance?

Which is a reason a person might decide not to purchase insurance? to have protection in case something goes wrong. to avoid paying costly premiums on a monthly basis. to be prepared for potential major changes. to avoid feeling insecure or uncertain about the future.

Which are benefits of purchasing insurance?

The obvious and most important benefit of insurance is the payment of losses. An insurance policy is a contract used to indemnify individuals and organizations for covered losses. The second benefit of insurance is managing cash flow uncertainty. Insurance provides payment for covered losses when they occur.

What insurance agrees to pay a specific premium each year until death?

With whole-life insurance, the insured agrees to pay a specific premium each year until death.

Is LIC Jeevan Anand a term policy?

LIC’s Jeevan Anand Plan is a traditional savings plan which not only covers the insured for the chosen policy term, but the life cover continues after the completion of the policy term till the entire life of the insured. Thus, the plan is an Endowment cum Whole Life Insurance Plan.