The amount of coverage on a group credit life policy is limited to?

In a group credit life policy, the amount of coverage is specifically designed to correlate with the insured's total loan value. This type of policy is intended to pay off an outstanding loan balance in the event of the borrower's death, ensuring that the lender recovers the amount owed without placing a financial burden on the borrower's beneficiaries. The coverage is, therefore, limited to this total loan amount to align with the financial liability that needs to be addressed.

Options such as the average loan value in the group, the total value of the policyholder's assets, or the insured's total income do not accurately reflect the coverage limitations set by group credit life insurance. Each of these alternate measures does not relate directly to the specific financial obligation imposed by the insurance, which is to cover the exact loan amount that would be left unpaid due to the insured’s demise. The focus on the total loan value ensures that the insurance product is tailored to meet its purpose effectively.