[Solved] Which of the following best describes the primary purpose of life insurance? — Ans: To offer financial security to the insured's family in case of the insured's... | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

Which of the following best describes the primary purpose of life insurance?

ATo offer financial security to the insured's family in case of the insured's death

BTo provide financial protection against loss or damage to property

CTo cover medical expenses incurred due to illness

DTo insure against liability arising from accidents

Step-by-Step Solution

Step 1: Understand the primary purpose of life insurance
Life insurance is designed to provide financial security to the family or nominee of the insured in the event of the insured's death.
Step 2: Analyze options
To provide financial protection against loss or damage to property relates to property insurance, To cover medical expenses incurred due to illness relates to health insurance, and To insure against liability arising from accidents relates to liability insurance.
Final Answer:
To offer financial security to the insured's family in case of the insured's death → Option A
Quick Check:
Life insurance uniquely provides financial protection against the risk of death, unlike other insurance types.

Quick Trick: Life insurance = financial security for family after death.

Common Mistakes:

MISTAKES

Master "Life Insurance - LIC" in Insurance Awareness

Start learning the concept with an interactive lesson.

More Insurance Awareness Quizzes

Which of the following best describes the primary purpose of life insurance?