The correct answer is: C. Term Insurance has little or no saving element.
A term insurance policy is a life insurance policy that provides coverage for a specified period of time, known as the term. The policy pays out a death benefit if the insured person dies during the term, but no benefit is paid if the insured person survives the term. Term insurance is typically less expensive than other types of life insurance, such as whole life insurance or universal life insurance, because it does not have a savings component.
A whole life insurance policy is a type of permanent life insurance that provides both death benefit protection and a savings component. The death benefit is paid out if the insured person dies during the policy term, and the savings component can be used for retirement, education, or other financial goals. Whole life insurance is typically more expensive than term insurance, but it offers more flexibility and features.
A universal life insurance policy is a type of permanent life insurance that combines the features of term insurance and whole life insurance. The policy provides both death benefit protection and a savings component, and the amount of the death benefit and the savings component can be adjusted over time. Universal life insurance is typically more expensive than term insurance, but it offers more flexibility and features than whole life insurance.
A money back plan is a type of whole life insurance policy that provides a series of payments, known as “return of premium,” to the insured person at specified intervals, such as every five years. The return of premium is not guaranteed, and it may be reduced or eliminated if the policy is surrendered early. Money back plans are typically more expensive than term insurance, but they offer a guaranteed death benefit and a potential return of premium.
In conclusion, the correct answer is: C. Term Insurance has little or no saving element.