WAEC - Insurance (2018 - No. 22)
one benefit of life insurance policy is that it serves as
replacement of earnings after injuries
provision for bad debts
collateral for loans
repair cost of damaged properties
Forklaring
Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured's death. Life insurance enjoys favorable tax treatment unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary.
The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.