Which of the following is characteristic of credit life insurance Mcq?

Which of the following is characteristic of credit life insurance?

Which of the following is characteristic of credit life insurance? Clients purchase whole life insurance. Individuals can borrow from financial institutions to cover life insurance premiums. … Individuals can borrow from financial institutions to cover life insurance premiums.

What are the characteristics of life insurance explain?

Term life insurance is pure insurance protection that pays a predetermined sum if the insured dies during a specified period of time. 2 On the death of the insured person, term insurance pays the face value of the policy to the named beneficiary. All premiums paid are used to cover the cost of insurance protection.

What combines a term insurance element with a savings element?

Universal life (UL) insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance.

Which of the following is not a type of group eligible for group life insurance?

Which of the following is NOT an eligible group to obtain group life insurance? Group life insurance is limited to employer groups, multiple employer trusts, labor unions, group credit life insurance, and association plans.

IT IS INTERESTING:  Your question: Is there a grace period for car insurance in Louisiana?

What is credit insurance policy?

Credit Insurance is a type of insurance policy that is used to pay off existing debts in cases such as death, disability and in some cases, unemployment. Credit insurance protects the policyholder from the lender from the borrower’s inability to repay the loan or debt due to various reasons.

What type of life insurance are credit policies?

Credit life insurance is a type of life insurance policy designed to pay off a borrower’s outstanding debts if the borrower dies. The face value of a credit life insurance policy decreases proportionately with the outstanding loan amount as the loan is paid off over time, until both reach zero value.

What are the characteristics of life?

Big Ideas: All living things have certain traits in common: Cellular organization, the ability to reproduce, growth & development, energy use, homeostasis, response to their environment, and the ability to adapt. … Nonliving things may exhibit some, but not all, of these traits.

What are the characteristics of a life insurance contract explain the essential elements of life insurance contract?

In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

What characteristic makes whole life permanent protection?

What characteristic makes whole life permanent protection? Coverage until death or age 100. An insured purchased a Life Insurance policy. The agent told him that depending upon the company’s investments & expense factors, the cash values could change from those shown in the policy at issue time.

IT IS INTERESTING:  Best answer: When should you not claim car insurance?

What is a variable life insurance policy?

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.