In which form may a debtor receive Credit Life insurance?

A debtor may receive Credit Life insurance in the form of Group term life. This type of insurance is specifically designed to cover the outstanding balance of a loan in the event of the borrower's death. Group term life insurance provides a collective coverage policy that covers multiple individuals under a single contract, which often makes it more affordable for borrowers compared to individual policies.

Credit Life insurance is typically issued to lenders as a form of protection for the loan amount, ensuring that if the borrower passes away, the insurer pays off the debt, relieving the borrower's estate or beneficiaries from that financial obligation. The group aspect allows for lower premiums and simplifies the enrollment process, as those covered under the policy are generally members of a defined group, such as borrowers from a specific lender.

Whole life insurance and universal life insurance are types of permanent life insurance that build cash value and provide coverage for the insured's entire life, which does not align with the specific purpose of Credit Life insurance. Accidental death insurance typically covers only deaths resulting from accidents and does not encompass the broader coverage offered by Credit Life insurance. Thus, Group term life is the most applicable form for a debtor in this context.