New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    An insurance cover that is linked with credit activities

    and aims to protect the credit is called?
    A claims Correct Answer Incorrect Answer
    B Retrocession Correct Answer Incorrect Answer
    C Retrospective Rating Correct Answer Incorrect Answer
    D credit life Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Credit life insurance is a type of life insurance policy designed to pay off a borrower's debt 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.

    Practice Next