Credit Life- Life Insurance Overview
What determines the amount of the insurance in credit life insurance? -the amount of the loan -the amount of the item purchased -the age of the insured -the down payment
the amount of the loan determines the amount of the insurance in credit life insurance
Regarding credit life which of the following statements is true? -creditor pays the premium -debtor pays the premium -has a thirty day free look -debtor is the beneficiary
debtor pays the premium for credit life insurance
When must an "insurable interest" exist in life insurance? -at the time the application is completed -at the birth of the insured -at the time of application and at death of the insured -at the time of death of the insured
insurable interest exists at the time the application is completed
Which of the following would NOT have an insurable interest in the life that is being insured? -a person insuring his own life -a person insuring a spouse -a business partner insuring his partner -a voter insuring the life of the President
insurable interests are: insuring your own life insuring your spouse a business partner insuring his partner NOT an insurable interest: a voter insuring the life of the president
The most common use of life insurance is: -replace loss of earning power created by a person's death -pay for funeral expenses -provide for college education -provide for retirement income
The most common use of life insurance is to replace the loss of earning power created by a person's death
What is the name of the financial tool used to determine the amount of life insurance a prospect for life insurance would need: -financial needs -human life value -law of large numbers -bid and ask
human life value: the financial tool used to determine the amount of life insurance a prospect for life insurance would need
All of the following are true regarding credit insurance EXCEPT -maximum loan period is 15 years -coverage terminates when the loan is repaid -protects installment debt -credit accident and health pays off the loan in a lump sum if the insured is disabled
regarding credit insurance- credit accident and health DOES NOT pay off the loan in a lump sum if the insured is disabled
