Pennsylvania Life and Health Insurance Exam Practice Question
What is the policy-limit option being offered?
Correct Answer: A
Rationale: The policy-limit option being offered is $50,000, which represents the maximum amount that the insurer will pay for a covered claim. This limit is often chosen to balance affordability with adequate coverage for typical risks.
Options B ($100,000), C ($150,000), and D ($200,000) represent higher policy limits that may not align with the specific coverage needs or budget constraints of the insured. Selecting a higher limit may lead to increased premiums without necessarily providing additional value if the insured's risk exposure is lower. Thus, option A is the most appropriate choice for those seeking a manageable and effective insurance solution.
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