Which of the below statement is correct?

Life insurance is sold, not bought
Life insurance is bought, not sold
Life insurance is neither bought nor sold; it is a necessity and hence should be bought by every individual
None of the above

The correct answer is: B. Life insurance is bought, not sold.

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. The premium is used to pay for the insurer’s administrative costs and to build up a fund from which the benefit will be paid.

Life insurance is a financial product that can provide peace of mind and financial security for your loved ones in the event of your death. It can also be used to provide income replacement, pay off debts, or fund education expenses.

There are many different types of life insurance policies available, so it is important to shop around and compare policies to find the one that best meets your needs. You should also consider your budget and your health when choosing a policy.

Life insurance is a wise investment for anyone who wants to protect their loved ones financially in the event of their death. It is a relatively affordable way to provide peace of mind and security for your family.

Option A is incorrect because life insurance is a product that is purchased by individuals, not sold to them.

Option C is incorrect because life insurance is not a necessity. It is a financial product that can be beneficial for some people, but it is not something that everyone needs.

Option D is incorrect because life insurance is both bought and sold. It is a product that is purchased by individuals, but it is also sold by insurance companies.

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