Which of the following is essential for protecting people’s finances from large expenses or loss of income?InsuranceSavings accountsMutual fundsFixed deposits
Question
Which of the following is essential for protecting people’s finances from large expenses or loss of income?InsuranceSavings accountsMutual fundsFixed deposits
Solution
Insurance is essential for protecting people’s finances from large expenses or loss of income. This is because insurance policies provide a safety net for unforeseen circumstances that may result in large expenses or loss of income, such as medical emergencies, accidents, or loss of employment. While savings accounts, mutual funds, and fixed deposits can help build wealth over time, they do not offer the same level of protection against sudden large expenses or loss of income.
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