Which of the following types of insurance policies is most commonly used in credit life insurance?

Asked by: Una Lemke V  |  Last update: February 11, 2022
Score: 4.2/5 (67 votes)

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 type of insurance are credit policies issued as?

Majority of the credit life insurance policies are given as a decreasing term life insurance strategy.

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.)

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 most common type of life insurance policy offered by companies?

Whole life insurance policies are permanent, have higher premiums and death benefits, and constitute the most popular type of life insurance.

Life Insurance study class TYPES OF INSURANCE

42 related questions found

What is the most common life insurance?

Whole life insurance is the most common type of permanent life insurance and costs more than term life. This is because it offers lifelong coverage and pays out regardless of when you die. It also has an investment component called a cash-value account.

What are the 3 types of life insurance?

There are three main types of permanent life insurance: whole, universal, and variable.

Which of the following are types of insurance?

Broadly, there are 8 types of insurance, namely:
  • Life Insurance.
  • Motor insurance.
  • Health insurance.
  • Travel insurance.
  • Property insurance.
  • Mobile insurance.
  • Cycle insurance.
  • Bite-size insurance.

What are the main policies of life insurance?

What are the main types of life insurance policies in India?
  • Term Insurance.
  • Term insurance with return of premium.
  • Unit Linked Insurance Plans.
  • Endowment plans.
  • Moneyback policy.
  • Whole life insurance.
  • Group life insurance.
  • Child Insurance Plans.

What are the 4 types of life insurance?

The Four Major Types of Life Insurance
  • Term Life Insurance.
  • Whole Life Insurance.
  • Universal Life Insurance.
  • Variable Life Insurance.

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 is creditor insurance quizlet?

Insurance on a debtor to provide payments due on a specific loan or credit transaction while the debtor is sick or disabled. Pays a limited number of monthly payments on a specific loan during term of coverage. Creditor.

What is the purpose of credit insurance quizlet?

credit insurance is to indemnify the creditor (lendor) due to inability of the debtor to repay loan.

Which of the following types of policies allows for a flexible premium?

Universal life insurance policies offer flexible premiums that may allow you to adjust how much you'll pay each year by accessing some of the policy's cash value (though you will need to pay the minimum premium amount or the policy will lapse).

What type of insurance would be used for a return of premium rider?

A return of premium rider allows term life insurance policyholders to recover the premiums they've paid over the life of their policy if they don't die while the policy is in effect. Policies with this provision are also referred to as return of premium life insurance.

What is a variable 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.

How many types of General Insurance policies are available?

4 Different Types of General Insurance in India. General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.

Which of the following is true about the credit life insurance?

All of the following are true regarding credit life insurance, EXCEPT: As the debt is paid off, the face amount decreases to match the amount of the debt. At any time, the face amount of the policy cannot be greater than the amount of the debt. Credit life policies may be issued individually or through a group policy.

What is life insurance and types of life insurance?

Life Insurance is an arrangement between the Insurance company/Government which guarantees of compensation for loss of life in return for payment of a specified premium. ... Types of Life Insurance Policies. Claim Settlement Process.

What are the 6 types of insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

Which of the following are types of insurance quizlet?

Terms in this set (15)
  • Types of Insurance. -- Personal Insurance. ...
  • Personal Insurance. -- Auto Insurance. ...
  • Commercial Insurance. -- Workers Compensation Insurance. ...
  • Personal Insurance. Property Insurance encompasses three types of policies: ...
  • Auto Insurance. ...
  • Health Insurance. ...
  • Life Insurance. ...
  • Disability Insurance.

What are the types of insurance policies Class 11?

The five major types of insurance are:
  • Life Insurance.
  • Health Insurance.
  • Fire Insurance.
  • Marine Insurance.
  • Vehicle Insurance.

What are the five forms of term insurance?

Namely, level term insurance, increasing term insurance, decreasing term insurance, the return of premiums plans, and convertible term plans.

What are the different types of whole life policies?

Types of Whole Life Insurance Plans
  • Non-Participating Whole Life Insurance. This is a low-cost life insurance plan which offers the feature of face amount and level premium. ...
  • Participating Whole Life Insurance. ...
  • Pure Whole Life Insurance. ...
  • Limited Payment Whole Life Insurance. ...
  • Single Premium Whole Life Insurance.