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Commerce · Q438

Insurance

Graduate and Post Graduate · Commerce · question 438

Q438

Which of the below policy can provide protection to home loan borrowers?

A.
Life Insurance
B.
Disability Insurance
C.
Mortgage Redemption Insurance
Answer
D.
General Insurance

Answer: Option C

Solution

Answer: Option C
Solution:
Mortgage Redemption Insurance (MRI) is an insurance policy that provides financial protection for home loan borrowers. 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.