The correct answer is: C. Both I and II
Insurance is a contract between an insurer and an insured, where the insurer agrees to pay a sum of money (the benefit) to the insured or a designated beneficiary in exchange for a premium, upon the occurrence of a specified event.
There are many different types of insurance, but they can be broadly divided into two categories: personal insurance and commercial insurance. Personal insurance covers individuals and their families, while commercial insurance covers businesses and other organizations.
Some of the most common types of personal insurance include life insurance, health insurance, property insurance, and car insurance. Some of the most common types of commercial insurance include liability insurance, property insurance, and workers’ compensation insurance.
Insurance is important because it helps to protect people from financial loss. If you have a car accident, for example, your car insurance will help to pay for the damage to your car and the other person’s car. If you get sick, your health insurance will help to pay for your medical bills. And if you die, your life insurance will help to provide for your family.
Insurance can also help to reduce your financial risk. If you have a mortgage, for example, your mortgage insurance will help to pay off your mortgage if you die or become disabled. And if you have a business, your business insurance will help to protect your business from financial loss.
In conclusion, insurance is important because it helps to protect people from financial loss and reduce their financial risk.
Option I is true because insurance can help to cover the risk of living too long. For example, if you have a life insurance policy, your beneficiaries will receive a benefit when you die. This can help to provide for your family financially even if you live longer than expected.
Option II is also true because insurance can help one to be less dependent on others. For example, if you have health insurance, you will not have to pay for your medical bills out of pocket if you get sick. This can help to reduce your financial burden and make you less dependent on others for financial assistance.