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Commerce · Q436

Insurance

Graduate and Post Graduate · Commerce · question 436

Q436

Mortgage redemption insurance (MRI) can be categorised under _________.

A.
Increasing term life assurance
B.
Decreasing term life assurance
Answer
C.
Variable life assurance
D.
Universal life assurance

Answer: Option B

Solution

Answer: Option B
Solution:
Mortgage redemption insurance (MRI) can be categorised under decreasing term life assurance. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he/she dies before its full repayment.