Which of the following best describes the purpose of Credit Accident and Health Plans?

The purpose of Credit Accident and Health Plans is to provide financial assistance to borrowers by helping to pay off existing loans during periods of disability. When a borrower becomes disabled and unable to work due to an accident or health issue, this type of insurance ensures that the borrower can continue to meet their loan obligations without falling into default. This protection is essential for maintaining financial stability during difficult times, as it alleviates the stress of loan payments while the borrower is incapacitated.

Other options like helping to pay for routine medical expenses or providing cash value accumulation do not accurately represent the primary function of Credit Accident and Health Plans. These plans are specifically designed to complement financial obligations related to borrowing, rather than to serve as general health insurance or savings mechanisms. Similarly, while covering long-term health needs is important in the broader context of health insurance, it is not the specific focus of Credit Accident and Health Plans, which are short-term solutions to immediate financial struggles caused by disability.