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Which of the following is an example of a LONG-TERM insurance product?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) A whole-life policy that pays a benefit on the death of the life insured.Correct
  2. b) A motor-vehicle insurance policy covering accident damage.
  3. c) A household contents policy covering theft.
  4. d) A commercial property fire policy.

Why this is the answer

Life, disability and similar policies fall under long-term insurance. Motor, household contents and commercial property cover are short-term (indemnity) insurance products.

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