Question

Which statement best describes life insurance?

Answer 1

D) it protects property against theft, accidents, or damages

Answer 2

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.

In the case of life insurance, the assured individual purchases as with the expectation that if he or she passes away, the insurance company will pay monetary compensation to the individual's family and cover for all costs of related to his death.