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Which of the following statements best explains why some people get life insurance and others don't?

  • Question 11a of 25 - Utility and risk-aversion

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 1
  • Question: Which of the following statements best explains why some people get life insurance and others don't?
  • Answers:
  1. Life insurance is a cost that has no direct benefit.
  2. Different people are willing to face different kinds of risks.
  3. Some people have more than one life-insurance policy.
  4. Some life insurance companies go out of business before you die.

The correct answer is: Different people are willing to face different kinds of risks. The amount of risk a person is willing to face differs from person to person.

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