What benefit is typically included in group credit life insurance policies?

Group credit life insurance policies are designed to pay off a borrower's debt in the event of their death, ensuring that the financial obligation does not fall on their estate or survivors. A common benefit included in these policies is the accidental death benefit, which provides an additional payout if the insured dies as a result of an accident. This feature enhances the financial protection for both the borrower and the lending institution, reflecting the focus on covering debts specifically when unexpected tragedies occur.

The other options, while relevant to various insurance contexts, do not typically align with the main purpose of group credit life insurance. Guaranteed issue life coverage usually pertains to policies that do not require medical underwriting, but it’s not a standard feature of credit life insurance. Disability income coverage is focused on providing financial support during a period of disability rather than addressing debt obligations upon death. Health savings account contributions relate to health-related expenses and are not connected to life insurance benefits. Thus, the inclusion of an accidental death benefit is a key aspect of what makes group credit life insurance effective in protecting borrowers and lenders alike.