Vidyalelo
Commerce · Q639

Insurance

Graduate and Post Graduate · Commerce · question 639

Q639

Mortgage Redemption Insurance is nothing but

A.
It is a constant term insurance
B.
It is an increasing term insurance
C.
It is savings insurance like universal life insurance
D.
Decreasing Term Insurance
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Mortgage Redemption Insurance is nothing but decreasing Term Insurance. An MRI is a form of life insurance that pays off a part or the whole of the insured's outstanding mortgage balance in case of his or her death or total disability.