What is life insurance?(1 point) Responses It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. 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 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.

Question

What is life insurance?(1 point) Responses It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities or disorders. 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 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.

Answer 1

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.

Answer 2

Life insurance 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. (1 point)

Answer 3

To understand what life insurance is, we need to break down the given response options.

Option 1: "It helps cover costs for the day-to-day care of people with chronic illnesses, disabilities, or disorders." This statement actually describes long-term care insurance, which is different from life insurance. Long-term care insurance covers the costs associated with care for individuals with chronic illnesses or disabilities.

Option 2: "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." This statement refers to disability insurance rather than life insurance. Disability insurance provides income protection if an individual is unable to work due to illness, injury, or disability.

Option 3: "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." This statement also describes disability insurance, which offers income protection in case of illness or injury.

Option 4: "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." This is the correct definition of life insurance. It is a contract between a policyholder and an insurance company where the policyholder pays premiums in exchange for the insurance company promising to pay a specified amount (a death benefit) upon the insured individual's death.

Therefore, the correct answer is option 4.