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Commerce · Q409

Insurance

Graduate and Post Graduate · Commerce · question 409

Q409

_________ life insurance pays off a policyholder's mortgage in the event of the person's death.

A.
Term
B.
Mortgage
Answer
C.
Whole
D.
Endowment

Answer: Option B

Solution

Answer: Option B
Solution:
Mortgage life insurance pays off a policyholder's mortgage in the event of the person's death. This protects a mortgage holder's heirs in the event of his/her untimely demise. If the beneficiary dies after he/she has finished paying for the house, no mortgage life insurance is paid out.