The correct answer is: A. Dying too early.
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.
Life insurance can be purchased to cover the risk of dying too early, which can leave loved ones financially vulnerable. The death benefit can be used to pay for funeral expenses, outstanding debts, and other costs associated with the death of the insured person. Life insurance can also be used to provide financial security for dependents, such as children or a spouse.
There are many different types of life insurance policies available, each with its own set of features and benefits. It is important to compare different policies before purchasing one to ensure that you are getting the best coverage for your needs.
Option B, living too long, is not covered by life insurance. However, there are other types of insurance that can provide coverage for this risk, such as long-term care insurance.