Step-by-step explanation:
Businesses may choose to offer creditor insurance as a way to protect their customers' debt obligations in the event of death or disability. This type of insurance is typically offered by financial institutions and covers the outstanding balance of a loan or credit card. It can provide peace of mind for both the borrower and the lender, ensuring that the debt is paid off even if the borrower is unable to make payments.
On the other hand, personally owned term insurance is a type of life insurance that is purchased by an individual and provides coverage for a specified period of time (the term). Unlike creditor insurance, personally owned term insurance can be used to cover a variety of expenses, including mortgage payments, education expenses, and living expenses for dependents. The policyholder has more control over the coverage amount and beneficiaries, and the policy can be renewed or converted to a permanent policy at the end of the term.
Overall, creditor insurance and personally owned term insurance serve different purposes and may be appropriate for different individuals depending on their needs and financial situation.