4
QuizMultiple Choice

Buying Insurance

Question 4 • Personal Finance - EL3403

Which statement best describes life insurance?

Answer
A
It pays for doctor visits and preventive medical care.
B
It replaces lost income and covers medical expenses.
C
It provides benefits to loved ones after someone’s death.
D
It protects property against theft, accidents, or damages.

Explanation

Life insurance pays a benefit to the people named in the policy, usually after the insured person dies. That money can help loved ones with expenses or replace income. Choice C, “It provides benefits to loved ones after someone’s death,” best describes life insurance.

AI-written and checked against the verified answer.

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