Post Utme Covenant University 2022 Commerce Question 15

Practice objective / multiple choice question 15 from the 2022 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2022 Commerce Objective / Multiple Choice
Question 15 POST_UTME_COVENANT_UNIVERSITY • 2022 • COMMERCE • objective

A person purchases a life insurance policy that pays out a lump sum in the event of their death. The policy has a premium payment term of 20 years. Which of the following is a potential risk associated with this type of policy?

Answer Options

A. The policy may lapse if the premiums are not paid on time.
Correct Answer B. The policy may not pay out if the person dies within the premium payment term.
C. The policy may not pay out if the person dies after the premium payment term.
D. The policy may not pay out if the person dies due to a pre-existing medical condition.
Correct Answer
B
Correct Option:
The policy may not pay out if the person dies within the premium payment term.

About This Question

This is Post Utme Covenant University 2022 Commerce Question 15. It is one of the objective questions from the 2022 Post Utme Covenant University Commerce examination.

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