What term means the state of being solvent or able to meet obligations?

What term means the state of being solvent or able to meet obligations?

• A. Survivor protection
• B. Life insurance
• C. Solvency
• D. Lump-sum

Answer: (C)

Solvency is the state of being solvent or able to meet obligations. It means you have enough assets to cover debts and upcoming payments, reflecting solid financial health. For individuals, this means bills can be paid when due; for companies or insurers, it signals they can fulfill claims and contracts. The other terms refer to different concepts: survivor protection is about benefits to survivors after the insured’s death, life insurance provides a death benefit, and a lump-sum is a single payment amount rather than a measure of financial stability.

Solvency is the state of being solvent or able to meet obligations. It means you have enough assets to cover debts and upcoming payments, reflecting solid financial health. For individuals, this means bills can be paid when due; for companies or insurers, it signals they can fulfill claims and contracts. The other terms refer to different concepts: survivor protection is about benefits to survivors after the insured’s death, life insurance provides a death benefit, and a lump-sum is a single payment amount rather than a measure of financial stability.