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Which of the following types of insurance usually requires higher premium?
- a)Whole life Insurance
- b)Broad Form Insurance
- c)Health Insurance
- d)Term Insurance
- e)Life Insurance
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following types of insurance usually requires higher prem...
Understanding Insurance Premiums
When it comes to insurance, the premium is the amount you pay for coverage. Different types of insurance have varying premium costs based on their coverage extent and risk factors.
Types of Insurance and Premiums
- Whole Life Insurance: This provides lifelong coverage and includes a cash value component, leading to higher premiums compared to term insurance.
- Broad Form Insurance: This type of insurance offers extensive coverage, often encompassing various risks. Because it covers multiple scenarios and provides greater protection, it typically requires the highest premiums among the options listed.
- Health Insurance: Premiums can vary widely based on coverage levels, age, and health status, but they generally fall below broad form insurance due to their specific nature.
- Term Insurance: This offers coverage for a specific period and is usually the least expensive option, as it does not accumulate cash value.
- Life Insurance: This is a more general term that can include both whole and term life insurance, with varying premiums based on the type.
Conclusion
Broad Form Insurance generally requires higher premiums due to its comprehensive coverage and the associated risks involved. This makes it more expensive than the other options listed, which either offer limited coverage or have specific duration terms. Understanding these distinctions helps individuals make informed decisions about their insurance needs.
When it comes to insurance, the premium is the amount you pay for coverage. Different types of insurance have varying premium costs based on their coverage extent and risk factors.
Types of Insurance and Premiums
- Whole Life Insurance: This provides lifelong coverage and includes a cash value component, leading to higher premiums compared to term insurance.
- Broad Form Insurance: This type of insurance offers extensive coverage, often encompassing various risks. Because it covers multiple scenarios and provides greater protection, it typically requires the highest premiums among the options listed.
- Health Insurance: Premiums can vary widely based on coverage levels, age, and health status, but they generally fall below broad form insurance due to their specific nature.
- Term Insurance: This offers coverage for a specific period and is usually the least expensive option, as it does not accumulate cash value.
- Life Insurance: This is a more general term that can include both whole and term life insurance, with varying premiums based on the type.
Conclusion
Broad Form Insurance generally requires higher premiums due to its comprehensive coverage and the associated risks involved. This makes it more expensive than the other options listed, which either offer limited coverage or have specific duration terms. Understanding these distinctions helps individuals make informed decisions about their insurance needs.
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Community Answer
Which of the following types of insurance usually requires higher prem...
- ‘Broad Form Insurance’ is an Insurance coverage that extends beyond the basics to include rare events that may be of serious risk to the insured.
- This type of insurance usually requires that a higher premium, and often a deductible, be paid.
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Question Description
Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer?.
Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following types of insurance usually requires higher premium?a)Whole life Insuranceb)Broad Form Insurancec)Health Insuranced)Term Insurancee)Life InsuranceCorrect answer is option 'B'. Can you explain this answer?.
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