n NISM Certifications
NSM General NISM
Medium

How does a Term Life insurance policy function as an income replacement plan?

Practice question from IC 38 Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    By providing a lump-sum amount to the dependent beneficiaries

  2. By providing a series of monthly, quarterly, or similar periodical payments to the dependent beneficiaries

    Correct answer

  3. C

    By providing a fixed salary to the dependent beneficiaries

  4. D

    By providing health benefits to the dependent beneficiaries

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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