Multiple choice

Which of the following statements is incorrect?

  1. Term insurance can be taken as a standalone policy.

  2. Term insurance cannot be taken as a rider.

  3. Term insurance policies are sold by life insurance companies.

  4. Term insurance policies provide cover for a fixed period.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A rider is a provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional costs. So, term insurance cannot be taken as a rider.

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