Question

Mr. Mahesh is a software engineer. He has taken a term insurance for Rs. 3000000/- for 30years. This is an example for
Risk retention
Risk transfer
Risk avoidance
Risk tolerance

Answer 1

Risk transfer

Explanation:

Risk transfer is a type of process under which risk is managed and controlled that under risk transfer stage one person transfers his risk to another person. The insurance company is a type of risk transfer.  

In the given situation, Mahesh is transferring his risk by taking a term insurance policy of Rs. 3,000,000 .