An individual has secured a $ 12.000 loan from the bank to purchase a boat, which is scheduled for repyment in montly installments over 48 months. Which life insurance wolud protect the lender should the borrower die prior to retiring the debt?

Options

A. Level Term
B. Enhanced Whole Life
C. Modified Premium Life
D. Decreasing Term

Answer

D

Explanation

In Decresing Term, the death benefit decline systematically as, does most debt. Decreasing Term is used almost exclusively in credit insurance. Modified Permium and Enhanced Whole are types of Whole Life, and not apporpriate for short -term creditor protection.