Question

Jessica is an agent for LMN Life Insurance Company. She met with Brad, who was interested in purchasing life insurance. Jessica explained the various uses of life insurance, including income for Brad's wife during the 1- or 2-year period following Brad's death. This period is known as the_____

A) dependency period.
B) blackout period.
C) estate clearance period.
D) readjustment period

Answer 1

Correct option is (D)

Step-by-step explanation:

Readjustment period in case of insurance is the time period mostly one to two years after the death of the policy holder or the insured. The aim of insurance policies is to ensure that the family members receive the same amount of income during this period as was when the deceased was alive.

This is the period when the family members adapt to the new life situation. Here, Jessica is explaining about the income that Brad's wife would receive during readjustment period.