Question

which of the following policies is most appropriate for covering a mortgage obligation?
whole life
universal life
increasing term
decreasing term
clear selection
a survivorship life policy differs from a join life policy in that it pays the death benefit:
at the first death
at the second death
at policy maturity
after a waiting period
clear selection
credit life insurance is typically issued in what face amount ?
level face amount
increasing face amount

Explanation:

1. For mortgage coverage, the outstanding balance decreases over time, so a policy with a decreasing death benefit matches this liability.
2. Survivorship life policies pay out only after the second insured person passes away, unlike joint life which pays on the first death.
3. Credit life insurance is tied to a debt that reduces over time, so its face amount decreases alongside the remaining debt.

Answer:

1. Decreasing term
2. At the second death
3. Decreasing face amount (implied, as it matches the reducing debt structure)