Which of the following is not an element of the life insurance business?

The correct answer is D. Subsidy.

A life insurance policy is a contract between an insurance policy holder and an insurance company. The policy holder pays a premium to the insurance company, and in return, the insurance company agrees to pay a death benefit to the policy holder’s beneficiaries if the policy holder dies.

The three main elements of a life insurance policy are:

• Risk: The risk of death is the main reason why people buy life insurance. The insurance company takes on this risk in exchange for the premium that the policy holder pays.
• Assets: The insurance company uses the premiums that it collects to invest in assets, such as stocks, bonds, and real
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