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Wednesday, 22 April 2026
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A term insurance policy is cheap because?

A term insurance policy is cheap because?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A There is no claim if the insured survives the period
  • B The claim is small and easy to pay
  • C There is claim if the insured survives the period
  • D There is no payment due to the insured
Correct Answer: Option A
Explanation:
Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.

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