[amp_mcq option1=”Timing of death is certain” option2=”Timing of death is uncertain” option3=”Death is certain but its timing is uncertain” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is C. Death is certain but its timing is uncertain.<\/p>\n
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 premiums and uses the proceeds to pay out benefits to beneficiaries.<\/p>\n
Life insurance is possible because death is certain but its timing is uncertain. The insurer can invest the premiums and use the proceeds to pay out benefits to beneficiaries, even if the insured person dies many years after the policy was taken out.<\/p>\n
Option A is incorrect because the timing of death is uncertain. Option B is incorrect because death is certain. Option D is incorrect because life insurance is possible.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Timing of death is certain” option2=”Timing of death is uncertain” option3=”Death is certain but its timing is uncertain” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32463","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n