which of the following policies can be used as security for a loan.
- key-man policy
- endowment policy
-
term insurance policy
- whole life insurance
The correct answer is: C
Explanation
A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay, the lender can cash in the life insurance policyand recover what is owed.