A term insurance policy is cheap because?

A. there is no claim if the insured survives the period
B. the claim is small and easy to pay
C. there is a claim if the insured survives the period
D. there is no payment due to the insured

Correct Answer: Option A

A. there is no claim if the insured survives the period

Explanation

Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.