113k views
4 votes
"Life insurance creates an immediate estate." This phrase means:

a) Life insurance provides instant wealth to beneficiaries.
b) Life insurance is a form of real estate investment.
c) Life insurance increases your life expectancy.
d) Life insurance is a long-term financial investment.

1 Answer

4 votes

Final answer:

Life insurance provides financial protection for survivors of the insured individual through the payment of a death benefit.

Step-by-step explanation:

Life insurance does not create an immediate estate in the sense of instant wealth to beneficiaries or a form of real estate investment. However, it does provide financial protection for survivors of the insured individual. In the event of the insured's death, the life insurance policy pays out a death benefit to the beneficiaries, which can be used as a financial resource to cover expenses, pay off debts, or invest for the future.

User AspergillusOryzae
by
8.3k points

No related questions found