6
QuizMultiple Choice

Insurance

Question 6 • Personal Finance - EL3403

Why does insurance often provide "peace of mind"?

Answer
A
People know their insurance coverage will help prevent accidents and damage.
B
People trust that they will make a profit if they pay insurance premiums.
C
People are not concerned about their health if they can pay for doctor's visits.
D
People are less worried when they know they have protection from risk.

Explanation

Insurance offers financial protection if a covered loss or problem occurs. Knowing that protection is in place can make people feel less worried about possible risks, which is why insurance provides “peace of mind.” Choice D, being less worried when protected from risk, is correct.

AI-written and checked against the verified answer.

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