What type of insurance would you recommend for someone who wants to insure the life of a debtor in connection to a specific loan?

What is a group life insurance policy?

Group life insurance is a specific type of life insurance typically offered by a large organization to its members. Large companies often offer this coverage to their employees as part of its benefits package.

Which of the following is true about group life insurance?

All of the following are true regarding group term life insurance, EXCEPT: Evidence of insurability is not required to renew coverage. The correct answer is: The policy is issued for one year and may be renewed annually with evidence of insurability.

What is a credit insurance policy?

Credit insurance is optional insurance that make your auto payments to your lender in certain situations, such as if you die or become disabled. ... Credit disability insurance, also known as accident and health insurance, which makes payments on the loan if you become ill or injured and can't work.

Which of the following types of life insurance is the most common out of all life coverage in force in the United States?

Whole life coverage is the most common form of life insurance and what many people think of when they hear “permanent life insurance.” Whole life provides a policyholder with lifelong coverage that includes a guaranteed 'cash value' (think trade-in value) component allowing you to build up savings over time.

What is the purpose of credit life insurance?

Credit life insurance covers a large loan. It benefits its lender by paying off the remainder of the loan if the borrower dies or is permanently disabled before the loan is paid. Here's how it works. A borrower takes out a mortgage and also gets a credit life insurance policy on the loan.

What is a return of premium policy?

With a return of premium policy, any money you paid for the insurance is refunded tax-free at the end of the term. In other words, you get your money back instead of paying for something you never used. Return of premium life insurance tends to be more expensive than traditional term life insurance.

What is a premium in insurance?

The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance. If you have a Marketplace health plan, you may be able to lower your costs with a premium tax credit.

What two types of assignments are?

The two types of assignment are Collateral (partial), and Absolute (entire face amount).

What are the 3 main types of insurance?

Which of the following are types of insurance?

What kind of life insurance is best for me?

For most people, term life insurance is sufficient, and it's the cheapest type of coverage. It lasts a set period of time and provides a guaranteed payout if you die during that term. If you're interested in lifelong coverage, a permanent policy such as whole life insurance might be a good fit.

What is the most common type of life insurance?

Whole life insurance is the most common type of permanent insurance policy. In addition to providing cash benefits to your beneficiaries upon your death, the coverage comes with guaranteed cash value during the life of the policy.

What are the 4 types of life insurance?

What type of insurance is creditor insurance?

Creditor insurance is any insurance through your bank. Depending on the type of loan, it can also be called mortgage insurance or loan insurance. Creditor insurance is designed to pay off the balance of your loan or mortgage in the event of your death.

What type of insurance is known as Consumer Credit 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.

What type of insurance is known as Consumer Credit insurance quizlet?

(Also known as "consumer credit insurance," credit life and health covers the life and disability of a debtor during the time a loan is outstanding.)

What are the typical types of group life insurance coverage?

There are three basic types of group life insurance: group term life, group universal life and variable group universal life. The most common form of group life insurance is group term life. This is typically provided to the employees by the employer in the form of a 1-year annually renewable term insurance policy.

What is group insurance coverage?

Group Insurance health plans provide coverage to a group of members, usually comprised of company employees or members of an organization. Group health members usually receive insurance at a reduced cost because the insurer's risk is spread across a group of policyholders.

What are the benefits of group life insurance?

Group life insurance can be beneficial because it features: Income tax-free death benefit. Minimal or no medical underwriting. The potential to add additional coverage for dependents.