Multiple choice

Which of the following is/are true?

I. Insurance is necessary to cover the risk of living too long. II. Insurance helps one to be less dependent on others.

  1. Only I

  2. Only II

  3. Both I and II

  4. Neither I nor II
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Insurance is necessary to cover the risk of living too long. To guard against unpredictable events that may have serious financial repercussions, one must buy insurance. The 2nd statement is not correct because the insurance does not pay you any premium on monthly basis or pensions which would make one less dependent on others. It provides you with risk coverage. 

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