Credit life insurance is usually written as what type of policy?
A. Increasing term
B. Decreasing term
C. Adjustable life
D. Whole life
Answer (2)
Credit life insurance is typically written as a decreasing term policy, meaning that the coverage decreases as the loan amount is paid down. This type of policy is designed to match the decreasing balances of debts such as mortgages. Other policy types do not serve the same specific function as credit life insurance. ;
Credit life insurance is typically written as a decreasing term policy, which means the coverage amount decreases over time as the loan is paid down. This policy is designed to match the decreasing balance of debts, such as mortgages, ensuring that the insurance payout corresponds with the borrower's outstanding liability. Thus, the correct choice is B. Decreasing term.
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