A term insurance policy is cheap because?
-
A.
there is no claim if the insured survives the period -
B.
the claim is small and easy to pay -
C.
there is claim if the insured survives the period -
D.
there is no payment due to the insured
Correct Answer: Option A
Explanation
Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.