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Which of the following was NOT a factor which led to the proliferation of life insurance?...

Which of the following was NOT a factor which led to the proliferation of life insurance?

A. Insurance salespeople

B. Increased life expectancy

C. Statistical data on life expectancy

D. New sales pitches

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Answer #1

Answer : Option B. Increased life expectancy

Life insurance is a cover to offset the loss of an earning individual of the family. Say the only earning individual of the family dies then what happens to the future of the family. In such a case an insurance cover protects the family from such uncertain future.Now if life expectancy increases then people won't have the incentive to buy life insurance since in their mind they'd start assigning lower risk weight to the possibility of losing life. Thus increased life expectancy is not a reason which led to the proliferation of life insurance.

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