Question

Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive a lump sum payment at maturity of the policy.
True/False

Answer 1

Answer:

The statement is: False.

Explanation:

Life Insurance is a financial contract that protects an individual's dependents in the case of his or her death. In life, the policy holder makes payments on a regular basis -typically monthly- to be covered and selects who the beneficiaries will be if he or she passes away. The beneficiaries receive a lump sum of payment only in front of that event.