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Which statement is true about life insurance policies and the perils they cover?

A life insurance policy insures against 3 different perils

Life insurance policies vary widely in peril coverage

Life insurance policies indeed vary widely in the types of perils they cover, which is why the statement about their variability is accurate. These policies can encompass a range of scenarios, including natural death, accidental death, and even specific illnesses, depending on the terms of the policy. Different insurers may also offer various riders or add-ons that can provide additional coverage for specific situations or perils.

The diversity in life insurance policies means that a consumer can choose a plan that best fits their individual needs and financial goals. This variation allows for tailored solutions, which can lead to significant differences in coverage scope, premium amounts, and benefits provided.

Other statements suggest inaccuracies about coverage limits or types. For instance, while life insurance policies can cover accidental death, they typically include much more than that, refuting the idea that life insurance is only about accidental death or limited to a few perils. This reinforces the notion that understanding the various options in life insurance policies is vital for making informed decisions.

Policyholders can only select one peril to be covered

Life insurance only covers accidental death

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