In: Accounting
Ricky obtains an insurance policy from Security Insurance, Inc. The policy provides that on Ricky’s death Security will pay $500,000 to Tori, Ricky’s spouse and beneficiary. This is
a. |
?disability insurance. |
|
b. |
?life insurance. |
|
c. |
?health insurance. |
|
d. |
?key-person insurance. |
The Answer is “B. Life Insurance”
- This the case of Life Insurance.
- Life Insurance is an agreement between the Policy owner and the Insurer, where a insurer agrees to pay a sum of money on the death of the insured persons to the beneficiaries.
- Life Insurance provides financial support to the family of the Insured person upon his death.
- Under Life Insurance, It protects the peoples who depends on the insured person
- Ricky obtains a Life insurance policy from Security Insurance, Inc. on the basis that on Ricky’s death, Security insurance Co. will pay $500,000 to Tori, Ricky’s spouse and beneficiary.