What does group credit life insurance primarily provide?

• A. The lender
• B. The borrower
• C. The insurer
• D. The employee

Answer: (A)

Group credit life insurance is designed to protect the lender by ensuring the borrower’s debt is paid off if the borrower dies. It’s typically issued to the lender under a master policy tied to a specific loan, and the death benefit goes to the lender to satisfy the outstanding loan balance (often decreasing as the loan is repaid). Because the purpose is to guarantee loan repayment, the primary beneficiary is the lender, not the borrower, the insurer, or an employee.