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Insurance that helps pay for funeral and burial costs when a person dies is called _____ insurance.A.liabilityB.disabilityC.healthD.life

Question

Insurance that helps pay for funeral and burial costs when a person dies is called _____ insurance.

A. liability
B. disability
C. health
D. life

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Solution

Break Down the Problem

  1. Identify the type of insurance mentioned in the question.
  2. Analyze the function of each insurance type provided in the options.

Relevant Concepts

  • Liability Insurance: Protects against claims resulting from injuries and damage to people or property.
  • Disability Insurance: Provides income in the event a policyholder is unable to work due to disability.
  • Health Insurance: Covers medical expenses for illnesses, injuries, and other health-related issues.
  • Life Insurance: Provides a monetary benefit to a designated beneficiary upon the death of the insured person.

Analysis and Detail

  • The question specifically asks about insurance that covers funeral and burial costs.
  • Among the given options, life insurance is specifically designed to provide financial support to beneficiaries for various expenses, including funeral costs, at the death of the insured.

Verify and Summarize

  • After analyzing each option, it becomes clear that life insurance directly correlates to the coverage of costs incurred upon death. The other types of insurance do not apply.

Final Answer

The correct answer is D. life insurance.

This problem has been solved

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