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Under an Industrial or Home Service Contract, what is normally the face amount of the policy?

A. $5,000
B. $2,500
C. $1,000 or less
D. $10,000

1 Answer

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Final answer:

The face amount of an Industrial or Home Service Contract is typically $1,000 or less, aimed at covering funeral expenses.

Step-by-step explanation:

Under an Industrial or Home Service Contract, the face amount of the policy is normally $1,000 or less (Option C). These policies are also referred to as "burial policies" or "final expense insurance," and they are designed to provide a small payout to cover funeral expenses and other associated costs. Industrial or Home Service Contracts are typically sold door-to-door or through home visits by insurance agents, and their premiums are often collected on a weekly or monthly basis.

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