In the given group mortgage protection scenario, which applicants are not necessarily required to be covered by the policy?

• A. Megan and Morgan
• B. Alex and Sandra
• C. Frank and his separated wife
• D. Pat and his daughter

Answer: (A)

In group mortgage protection, who must be covered is tied to who is financially tied to the mortgage. Typically, coverage is required for the lives of the borrowers on the loan, while others who are not obligated on the loan or who aren’t essential to the loan’s repayment are optional.

Megan and Morgan are not necessarily required to be covered because they may not both be borrowers on the mortgage or may not be legally obligated for the loan. Coverage for non-borrowers or non-essential relatives isn’t automatic in many group plans.

The other pairs involve individuals who are more directly connected to the loan or to dependents of the borrower, and in those cases, coverage is more commonly expected or offered (for example, co-borrowers or dependents who impact loan repayment).