Which of the following individuals is most likely to purchase a life insurance policy that pays...

Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?

Ian, who expects to have a short life expectancy because of an illness

Avril, a tax attorney who wants to avoid adverse selection

Alma, who expects to live a long life, based on her family history

Bradley who has six young children

Expert Solution

Aanswer : The answer is option A.

A person who expects that he will live a short life time period due to his illness, purchase a life insurance policy to secure his family. Here Lan expects to live a short life time period. Hence Lan will purchase a life insurance policy. For this reason except option A other options are not correct. Therefore, option A is the correct answer.

Rahul Sunny answered 2 years ago

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