A term insurance policy is cheap because?
-
there is no claim if the insured survives the period
- the claim is small and easy to pay
- there is claim if the insured survives the period
- there is no payment due to the insured
The correct answer is: A
Explanation
Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.