In a term insurance the benefits are fixed throughout the duration
In an MRI the insurance benefit on account of cover will decrease year after year
There is no material difference between a term insurance policy and an MRI as far as benefits are concerned
MRI is suitable for a loan sought from a bank as a mortgage cover
Answer is Wrong!
Answer is Right!
The correct answer is: B. In an MRI the insurance benefit on account of cover will decrease year after year.
A term insurance is a type of life insurance policy that provides coverage for a specified period of time, known as the term. The benefits of a term insurance policy are fixed throughout the term, regardless of the insured’s health or financial situation.
An MRI, or mortgage repayment insurance, is a type of life insurance policy that is designed to repay a mortgage loan in the event of the insured’s death. The benefits of an MRI policy are typically decreasing over time, as the mortgage balance decreases.
Therefore, option B is the incorrect statement.