What policy may pay benefits such as cash or medical coverage needed as a result of an unexpected incident?

Question

Certilyst · Accepted Answer

B Rationale: Accident policies may pay benefits such as cash or medical coverage needed as a result of an unexpected incident. These policies are specifically designed to provide financial support for costs arising from accidents, including medical expenses and lost income.

Life insurance provides benefits to beneficiaries upon the insured's death but does not cover medical expenses or cash benefits for unexpected incidents during the policyholder's lifetime.

Long-term care insurance is intended to cover the costs of services for individuals needing assistance with daily living activities, not specifically for medical expenses resulting from accidents.

Disability insurance offers income replacement for individuals who cannot work due to injury or illness, but it does not directly cover medical expenses or cash benefits associated with accidents.

In summary, accident policies uniquely address the financial repercussions of unexpected incidents, making them the correct choice.

Indiana Life and Health Producer Exam

What policy may pay benefits such as cash or medical coverage needed as a result of an unexpected incident?