Question

What is life insurance?(1 point)
Responses

It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away.
It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away.

It is often sponsored by the employer as part of benefits and provides protection to an employee while they cannot work and therefore earn enough money.
It is often sponsored by the employer as part of benefits and provides protection to an employee while they cannot work and therefore earn enough money.

It is used to protect income in case of illness or injury for people younger than 65 years who have worked for at least 10 years.
It is used to protect income in case of illness or injury for people younger than 65 years who have worked for at least 10 years.

It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders.

Answer 1

The first response: "It is a contract purchased by the policyholder that commits the insurance company, in exchange for premiums paid, to pay a specified amount of money when the insured passes away."

(The others describe disability insurance/employer-sponsored income protection, Social Security Disability Insurance, and long-term care insurance, respectively.)