Which insurance pays beneficiaries directly upon accidental death or loss of functionality? (1 point) Responses mortgage protection life insurance mortgage protection life insurance accidental death and dismemberment accidental death and dismemberment credit life coverage credit life coverage debt cancellation contract
Accidental death and dismemberment insurance pays beneficiaries directly upon accidental death or loss of functionality.
The insurance that pays beneficiaries directly upon accidental death or loss of functionality is called accidental death and dismemberment (AD&D) insurance.
To find out which insurance pays beneficiaries directly upon accidental death or loss of functionality, you can start by understanding the different types of insurance coverage available.
One type of insurance that can provide direct payment to beneficiaries upon accidental death is called accidental death and dismemberment (AD&D) insurance. AD&D insurance is specifically designed to provide coverage in the event of accidental death or severe injury.
You can get AD&D coverage as a stand-alone policy or as a rider to an existing life insurance policy. A rider is an additional provision that can be added to enhance the benefits of an existing insurance policy.
Another type of insurance that may provide direct payment upon accidental death is mortgage protection life insurance. This type of insurance is typically designed to pay off the remaining mortgage balance in case of the insured person's death.
Credit life coverage, on the other hand, is an insurance product that pays off the outstanding debt in the event of the insured person's death. It is typically associated with loans or credit products and may not necessarily be limited to accidental death or loss of functionality.
Lastly, debt cancellation contract is another form of insurance that cancels or forgives outstanding debts, such as credit card balances or loans, in the event of the insured person's death. However, it may not be specific to accidental death or loss of functionality.
So, if you are specifically looking for an insurance policy that pays beneficiaries directly upon accidental death or loss of functionality, the most suitable options are accidental death and dismemberment (AD&D) insurance or mortgage protection life insurance. Be sure to carefully review the terms and conditions of the policy to ensure it aligns with your requirements before making a decision.