WAEC Commerce 1991 (August) Question 75

Question 75

Insurance

Which of the following policies could be taken for a guaranteed life income?

  1. A.Endowment assurance
  2. B.Household policy
  3. C.Annuity
  4. D.Personal accident insurance
  5. E.Consequential loss insurance
Show the answer and explanation

Answer: C (Annuity)

Explanation

An annuity pays a fixed income every year for life in return for a lump sum.