Readers ask: Which Of The Following Is Not Allowed In Credit Life Insurance?

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Question Answer
A Universal Life insurance policy has two types of interest rate that are called Guaranteed and Current
Which of the following is NOT allowed in credit life insurance? A Creditor requiring that a debtor buys insurance from a certain insurer

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Which of the following will 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. Which of the following is called a “second-to-die” policy?

Which of the following types of insurance is typically used for 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.”

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Which of the following is true regarding the insurance amount in credit life policy?

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. – In decreasing policies, face amount decreases, but premium remains constant. – In level term & increasing term policies, premium also remains level.

Which of the following would help prevent a universal life policy from lapsing quizlet?

Which of the following would help prevent a universal life policy from lapsing? The policy contains sufficient cash value to cover the cost of insurance. All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

What is credit insurance policy?

Credit Insurance is a type of insurance policy that is used to pay off existing debts in cases such as death, disability and in some cases, unemployment. Credit insurance protects the policyholder from the lender from the borrower’s inability to repay the loan or debt due to various reasons.

Is a creditor beneficiary in credit life insurance?

Credit life insurance pays a policyholder’s debts when the policyholder dies. Unlike term or universal life insurance, it doesn’t pay out to the policyholder’s chosen beneficiaries. Instead, the policyholder’s creditors receive the value of a credit life insurance policy.

What are the three types of credit insurance?

There are three kinds of credit insurance— disability, life, and unemployment —available to credit card customers.

What type of life insurance are credit policies issued at?

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.

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Which of the following Cannot be included along with illustration used to sell life insurance?

Which of the following CANNOT be included along with illustrations used to sell life insurance? Illustrations used to sell life insurance cannot use the term “vanishing premium” – or any similar term – that implies the policy becomes paid up.

What is true regarding whole life insurance?

Whole life insurance provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate on a tax-advantaged basis. These policies may be known as “traditional” life insurance.

Which is not considered a rebate?

Rebating can be anything of economic value, given as an inducement to buy. B; A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.

Who is the policy owner in credit life insurance?

Who is the policy owner in credit life insurance? You are the owner of your credit life insurance policy, but the policy’s beneficiary is your lender, rather than beneficiaries of your choosing.

Which of the following would prevent a universal life policy from lapsing?

Cash Account will Cover Premiums – If for some reason you become strapped financially, the insurance company will use the funds in your cash account to pay your premium(s) thereby preventing your policy from lapsing.

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Which of the following is not true regarding the annuitant?

Which of the following is NOT true regarding the annuitant? The annuitant cannot be the same person as the annuity owner. A deferred annuity is surrendered prior to annuitization.

Which policy would not offer a policy loan option?

Term life insurance, which expires after a set period and has no cash value, does not offer a policy loan option. After the cash value of your permanent policy is high enough — the exact amount varies by insurer — you may be able to take out a loan from your life insurance company.

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