Final answer:
Life insurance provides a monetary payout to your beneficiaries, the people you choose to receive assets after your death. It is a way to protect individuals from financial loss and can also include a cash-value component for policyholders to use during their lifetime. Life insurance provides a monetary payout to your beneficiaries, or the person(s) you elect to receive money or other assets in the event of your death. Therefore, the correct answer is b) Your beneficiaries.
Step-by-step explanation:
Life insurance provides a monetary payout to your beneficiaries, or the person(s) you elect to receive money or other assets in the event of your death. Therefore, the correct answer is b) Your beneficiaries.
Insurance serves as a method of protecting an individual from financial loss. Policyholders contribute regular payments to an insurance company, which in turn offers financial protection to beneficiaries if the insured individual passes away. Life insurance policies not only ensure that survivors are taken care of financially, but they can also come with a cash-value component, known as whole life insurance, which accumulates money that can be used by the policyholder during their lifetime.
People often hold various types of insurance policies such as health, auto, house or renter's, and life insurance, each safeguarding against financial loss from specific events. Life insurance uniquely helps secure the financial future of one's family after their death, which can also include repaying loans that may have been taken against the policy.