Life insurance is intangible. You can't see, smell, touch or taste its benefits and those benefits mainly happen when someone is died. However, life insurance does have some important benefits that should not be ignored in the financial planning process. Which of the following is out of those benefits?
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A. B. C. D.BC
Life insurance is a type of insurance contract that provides a death benefit to a designated beneficiary upon the death of the insured. Although life insurance may not be tangible, it provides important financial protection for the policyholder and their beneficiaries.
Option A, Protection from debtors, is a benefit of life insurance. Life insurance can provide a source of funds to pay off debts or obligations after an individual's death, which can help protect their family from creditors.
Option B, Financial protection from dependents, is another key benefit of life insurance. Life insurance can provide a source of income to replace lost income in the event of an insured's death, which can help support their family's financial needs.
Option C, Vehicle for savings, is a feature of some types of life insurance policies, such as whole life or universal life insurance. These policies may offer a cash value component that accumulates over time and can be accessed by the policyholder during their lifetime.
Option D, Interest benefit, is not a benefit of life insurance. Life insurance policies do not typically provide interest earnings to the policyholder, as they are designed primarily to provide a death benefit to the beneficiary.
Therefore, the correct answer to the question is D. Interest benefit.