Texas Life Agent Practice Exam 2025 – Comprehensive All-in-One Guide to Master Your Certification!

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What is a key benefit of Credit Life insurance to borrowers?

It provides cash value accumulation

It secures the loan in case of death

Credit Life insurance is specifically designed to protect borrowers by paying off the outstanding balance of a loan if the borrower passes away. This feature is crucial because it ensures that the borrower's family or estate is not burdened with debt at a difficult time. By covering the loan amount, Credit Life insurance brings peace of mind to borrowers, knowing that their loved ones will not have to worry about financial obligations related to the loan if they are no longer around to manage them. This primary purpose is what distinguishes Credit Life insurance from other types of insurance products, which may focus on cash value accumulation, lower interest rates, or equity building.

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It offers lower interest rates on loans

It assists in building equity

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