Which of the following is correct regarding credit life insurance quizlet?
The correct answer is: Endowment contracts endow only upon the insured's death. Credit life insurance is issued on the life of the person who has the debt (debtor) and the creditor owns and is the beneficiary of the policy. You just studied 14 terms!
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Which of the following statements is correct regarding credit life insurance?
Correct! Credit life insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.
Which of the following statements is correct if a labor union buys a group life insurance policy to insure its members?
Which of the following statements is correct if a labor union buys a group life insurance policy to insure its members? The union owns the policy for the benefit of its members.
Which of the following is true regarding credit life insurance?
C) It insures the life of a debtor. Correct! Credit life insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.
Which of the following is true regarding the insurance amount in a credit life policy quizlet?
Which of the following is true regarding the insurance amount in a credit life policy? Creditor can only insure the debtor for the amount owed. You just studied 31 terms!
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What is a credit life insurance?
What is credit life insurance? Credit life insurance is an insurance policy specifically designed to pay off a loan in the case of an untimely death. In the modern era of credit and debt-driven life, credit life insurance is one way of protecting your loved ones from financial struggles in the face of your loss.
What is true about credit life insurance?
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.
Who is the policyowner in credit life insurance quizlet?
Benefits are paid to the borrower's beneficiary. Which of the following is TRUE about credit life insurance? Creditor is the policyowner. An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks.
Who is the policy owner in credit life insurance?
Who owns a credit life insurance policy? You are the owner of your credit life policy, but the policy's beneficiary is your lender, rather than beneficiaries of your choosing. What are the disadvantages of a credit life insurance policy? The downside of credit life policy is that it's usually only good for one loan.
Which of the following statements is correct concerning conversion provisions in group life insurance policies?
The correct answer is: Evidence of insurability is required for conversion. All of the following are true regarding the conversion option for group life insurance, EXCEPT: The converted coverage must be whole life. The correct answer is: The converted coverage may be term or whole life.
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Which of the following groups may not be insured by a group life insurance policy quizlet?
Which of the following groups may NOT be insured by a group life insurance policy? Individuals who are related by blood. A group life insurance policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood or legal adoption.
Which of the following is an eligible group for group life insurance?
Eligible groups include employer-sponsored groups, trade or professional associations, and labor unions. Multiple employer trusts (METs), multiple employer welfare arrangements (MEWAs), and lender groups are also eligible. However, a group cannot be formed only for the purpose of buying insurance.
What is one of the advantages to having a group contract insurance policy quizlet?
The majority of all health insurance in force today is provided on a group basis. The cost of group health insurance is lower than the cost for individual coverage since the administrative costs and selling expenses found in group health insurance are far less.
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What type of insurance is most commonly used with credit life insurance?
Credit life insurance and credit disability insurance are the most commonly offered forms of coverage. They also may go by different names. For example, a credit life insurance policy might be called "credit card payment protection insurance," "mortgage protection insurance" or "auto loan protection insurance."
What policy is usually used for credit life insurance?
What policy is usually used for credit life insurance? Credit life insurance is usually issued as decreasing term life. As the debt is paid off, the face amount decreases to match the amount of the debt.
Which of the following would be the beneficiary in credit life insurance?
Reason: In credit life insurance, the creditor is the policyowner and the beneficiary; the debtor is the insured.