For someone with a limited budget, Universal life insurance type of life insurance policy provides the maximum amount of coverage for the least amount of money.
What is insurance policy?
In insurance, a policy is a contract (usually a model contract) between an insurance company and a policyholder that sets out the claims that the insurance company is legally obligated to pay. In exchange for the first payment, called the premium, the insurance company promises to pay for the losses caused by the risks covered by the terms of the contract.
Insurance policies are designed to meet specific needs and therefore have many features not found in many other types of policies. Because insurance policies are standard forms, they share a standard language common to different types of insurance policies.
An insurance policy is essentially a consolidated contract. In other words, it contains all the forms related to the contract between the policyholder and the insurance company. However, in some cases, supplementary documents, such as letters sent after a final agreement has been reached, may make the insurance contract a non-consolidated contract.
Therefore, For someone with a limited budget, Universal life insurance type of life insurance policy provides the maximum amount of coverage for the least amount of money.
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