QQuestionHealthcare
QuestionHealthcare
"What type of life insurance are credit policies issued as?
A. Whole
B. Variable
C. Term
D. Universal
"
12 months agoReport content
Answer
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Step 1:I'll solve this problem step by step:
Step 2:: Understand the Context
Credit life insurance is a specific type of insurance policy designed to pay off a debt if the borrower dies before the debt is fully repaid.
Step 3:: Analyze the Insurance Types
Let's review the characteristics of each type of life insurance: - Whole Life: Provides lifelong coverage with a cash value component - Variable Life: Allows investment of premiums in various investment accounts - Term Life: Provides coverage for a specific period with no cash value - Universal Life: Flexible premium and coverage with an investment component
Step 4:: Identify the Specific Characteristic of Credit Life Insurance
Credit life insurance is typically issued as a term life policy. It is designed to: - Cover a specific loan or credit obligation - Provide coverage for the duration of the loan - Pay the remaining loan balance if the borrower dies - Decrease in value as the loan is paid down
Step 5:: Select the Correct Answer
Based on the characteristics of credit life insurance, the correct answer is: C. Term
Final Answer
Term life insurance is the type of policy typically issued for credit life insurance policies.
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