The correct answer is D. Personal accident insurance.
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 insurer invests the premium and the accumulated interest, and uses the proceeds to pay the benefit when the insured person dies.
There are many different types of life insurance policies, but the main ones are term life insurance, whole life insurance, and endowment insurance.
- Term life insurance is the simplest type of life insurance. It provides coverage for a specified period of time, such as 10, 20, or 30 years. If the insured person dies during the term of the policy, the beneficiary will receive the death benefit. If the insured person does not die during the term of the policy, the policy will expire and no benefits will be paid.
- Whole life insurance is a more comprehensive type of life insurance. It provides coverage for the entire life of the insured person, as long as the premiums are paid. In addition to death benefits, whole life insurance policies also typically accumulate cash value over time. This cash value can be used to provide income in retirement, or it can be borrowed against.
- Endowment insurance is a type of life insurance that combines the features of term life insurance and savings. It provides coverage for a specified period of time, and if the insured person dies during the term, the beneficiary will receive the death benefit. If the insured person does not die during the term, the policy will mature and the policyholder will receive the cash value.
Personal accident insurance is a type of insurance that provides coverage for accidental death or dismemberment. It is not a main product of life insurance, as it does not provide coverage for death due to natural causes.