Question

Why do people typically purchase insurance policies?
A. They anticipate that they will never have to pay their deductibles.
B. They believe insurance policies will increase in value over time.
C. They calculate that their insurance premiums will be greater than
their benefits.
D. They would not be able to pay for major expenses without
insurance.

Answer 1

Answer:

D

Explanation:

Insurance is used too help pay for major expenses, so D should be the correct answer.

Answer 2

People purchase insurance policies because they can't be able to reimburse for major charges without insurance.

Option D is the correct answer.

What is an insurance policy?

An insurance policy is a contract between the policyholder and the insurance company to provide indemnification from the risk as specified in the policy.

After purchasing insurance policies, an individual can easily pay for huge expenses which are not in their budget. In this, the money is paid by the insurance company and the individual pays premiums for that.

Therefore, the acquisition of insurance policies by the people for making payments for huge expenses.

Learn more about the insurance in the related link;

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