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In Business / College | 2025-07-07

Which of the following types of insurance policies is most commonly used in credit life insurance?
A. Equity indexed life
B. Increasing term
C. Decreasing term
D. Whole life

Asked by kayls95

Answer (1)

The most commonly used type of policy in credit life insurance is decreasing term insurance, as it aligns with the decreasing balance of the debt. This ensures that upon the borrower's death, the insurance payout can cover the outstanding loan. Other types like whole life, increasing term, and equity indexed life do not match the specific needs of credit life insurance. ;

Answered by GinnyAnswer | 2025-07-08

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