A term insurance policy is cheap because?

  • A there is no claim if the insured survives the period
  • B the claim is small and easy to pay
  • C there is claim if the insured survives the period
  • D there is no payment due to the insured
waec 2016insurance

The correct answer is A. there is no claim if the insured survives the period

Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.

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