Answer:
The type of life insurance are credit policies issued as (3) Term
Step-by-step explanation:
Credit life insurance policies are typically issued as term life insurance. Term life insurance provides coverage for a specific period, such as the duration of a loan or mortgage. In the case of credit life insurance, the policy is designed to pay off the outstanding balance of a loan in the event of the policyholder's death. The coverage amount decreases over time as the loan is paid off, aligning with the reducing financial risk associated with the outstanding debt.
Unlike whole life, variable, or universal life insurance, which are more comprehensive and long-term policies, credit life insurance serves a specific purpose tied to a particular debt. It offers a cost-effective solution for providing financial protection to the borrower and the lender during the term of the loan.
Option 3 is correct.