Credit Accident and health plans are designed to
A) permit creditors the ability to require that coverage be purchased through insurers of their choice
B) provide permanent protection
C) help pay off existing loans during periods of disability
D) not permit free choice of coverage selection
The Correct Answer Is:
- C) help pay off existing loans during periods of disability
Credit Accident and health plans are designed to help pay off existing loans during periods of disability. Disability can happen for many reasons, such as a car accident or sickness. When disability occurs, the person may no longer be able to work and may need help to repay their existing loans. Credit accident and health plans can help cover some of the costs associated with disability, such as medical bills and loan payments. These plans are usually offered by lenders or insurers, and they can help people stay out of debt while they’re recovering.