Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

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


Sagot :

Final answer:

Term life insurance is the most suitable option for individuals who have borrowed loans and need protection. It provides coverage for a specific term without cash value accumulation.


Explanation:

Term life insurance would be best suited for an individual who has just borrowed $10,000 on a 5-year installment loan requiring monthly payments. Term life insurance is a type of insurance that provides coverage for a specific period (the term), offering a death benefit to beneficiaries if the insured passes away during the term. Unlike whole life insurance, term life insurance does not accumulate cash value, making it a more cost-effective choice for protecting against the event of premature death.


Learn more about Types of life insurance policies here:

https://brainly.com/question/39819577


Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.