Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

A. Decreasing term
B. Whole life
C. Variable life
D. Universal life

Sagot :

GinnyAnswer

Final answer:

Term life insurance is the best type of insurance for an individual who has borrowed money and requires monthly payments, offering coverage without cash value accumulation.


Explanation:

Term life insurance is more suitable for an individual who has just borrowed $10,000 on a 5-year installment loan requiring monthly payments. Compared to whole life insurance, which builds up cash value and is like a forced savings account, term life insurance is focused solely on providing coverage against premature death without accumulating cash value. This makes it a more cost-effective option for individuals primarily seeking financial protection for their loved ones.


Learn more about Life insurance policies here:

https://brainly.com/question/39513172


Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.