Insurance and Investments
Learning Objective
I can describe different types of insurance and investments.
Key Concepts
Insurance is a legal contract where the insurance company provides financial protection in the event of an unforeseen event, and the amount the individual receives is called the sum assured.
Term life insurance provides coverage for a fixed term, and if the policyholder outlives the term, they do not receive any money on maturity, whereas whole life insurance provides coverage for a lifetime.
Health insurance covers medical expenses, and motor insurance provides financial assistance if you have an accident with your bike or car.
Practice Questions
This lesson includes 12 practice questions to reinforce learning.
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1. What is the primary purpose of insurance?
2. Explain the difference between the insurer and the insured.
3. Which type of life insurance policy provides coverage for a fixed term, and what happens if the policyholder outlives the term?
...and 9 more questions
Educational Video
What is Insurance | What is Life Insurance and General Insurance | Different Types of Insurance
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