Question
Which type of insurance policy provides coverage for a
specific period of time?Solution
Term Insurance is a type of insurance policy that provides coverage for a specific period of time, typically ranging from 5 to 30 years. In the event of the policyholder's death during the term of the policy, the insurer pays a death benefit to the beneficiaries named in the policy. Term insurance policies do not provide any returns or benefits on maturity, and are mainly intended to provide financial security to the policyholder's family in case of an untimely death. Hence, option A is correct.
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