Montana Life Insurance Practice Exam 2025 – Complete Prep Guide

Disability benefits provided under a group credit disability insurance policy for credit card indebtedness are typically offered each credit card billing cycle. This means that when a cardholder becomes disabled and is unable to make payments, the insurer will generally cover the payments that are due according to the billing cycle defined by the credit card issuer.

This approach aligns with the nature of credit card payments, which occur monthly for most cardholders. By providing benefits each billing cycle, the insurer ensures that the cardholder does not fall behind on payments during their period of disability, which can help maintain their credit rating and prevent additional financial complications.

Other timing options, such as quarterly or annually, would not be suitable since they would not match the frequent nature of credit card billing cycles. Moreover, monthly payment frequencies might seem plausible but are generally less tailored to the specifics of credit card billing than providing benefits in alignment with the actual billing cycles of each cardholder's credit account.