WAEC - Insurance (2016 - No. 28)
which of the following policies can be used as security for a loan.
key-man policy
endowment policy
term insurance policy
whole life insurance
Explication
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.