Which of the following is a key advantage of term insurance compared to other life insurance products?

easy Q13 of 15

Insurance Awareness - Life Insurance - LIC

AHigher premiums due to investment component.

BLower premiums because it provides only death cover.

CGuaranteed maturity benefits at the end of the term.

DCash value accumulation during the policy term.

Step-by-Step Solution

Step 1: Compare premium costs
Term insurance premiums are generally lower because they cover only the risk of death without any savings or investment features.
Final Answer:
Lower premiums because it provides only death cover. → Option B
Quick Check:
Lower premiums because it = correct choice ✅

Quick Trick: Pure protection means affordable premiums.

Common Mistakes:

MISTAKES

Thinking term insurance has higher premiums due to benefits like maturity or cash value.

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