Why Pensions are said to represent the flip side of life insurance?

A. Life insurance provides protection against premature death whereas pension covers the contingency of living too long

B. In life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments

C. Both A & B

D. None of the above

Answer: Option C

Solution(By Examveda Team)

Pensions are said to represent the flip side of life insurance because Life insurance provides protection against premature death whereas pension covers the contingency of living too long and In life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments.