An insurance policy which benefits one's famility only in the event of one's death is...
An insurance policy which benefits one's famility only in the event of one's death is known as
- A) comprehensive insurance
- B) a whole life insurance
- C) an annuity
- D) an endowment
Correct Answer: B) a whole life insurance
Explanation
The question is asking about a type of insurance policy that only benefits one's family if the person insured dies. This type of policy is called a whole life insurance. It is different from comprehensive insurance, annuity, and endowment.Comprehensive insurance is a type of insurance that covers a wide range of risks and damages, such as theft, fire, and accidents. It is not specifically for the event of one's death, and it may or may not benefit one's family.
Annuity is a financial product that provides a stream of income for a fixed period or for life, depending on the terms of the contract. It is not an insurance policy and does not necessarily benefit one's family in the event of one's death.
Endowment is a type of insurance policy that pays a lump sum of money at a certain date or at the death of the insured, whichever comes first. It is not the same as whole life insurance which only pays out in the event of the insured's death.
Therefore, the correct answer to the question is Option B: a whole life insurance. This type of policy provides a death benefit to the insured's family upon the death of the insured.