Question

Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are) true?

(I) It involves an analysis of various family needs which must be met if a family breadwinner dies.
(II) Its use is appropriate only if a person currently has no life insurance protection.

(A) I only
(B) II only
(C) Both I and II
(D) Neither I nor II

Answer 1

A contract between the insurance policyholder and insurer according to which the insurer promises to give a certain amount of money when the policyholder dies, is known as life insurance. These policies are legal contracts. There are two major categories of life insurance policies, Protection policies, and Investment policies. Some of the Heath insurance policies are AIG Direct, Health IQ, Bestow and Ladder.