Decreasing term life insurance is often used to

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Decreasing term life insurance is often used to

a) provide retirement funds
b) provide coverage for a home mortgage
c) accumulate cash value
d) provide coverage for estate taxes

Answer: b) provide coverage for a home mortgage

WA Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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