Final answer:
Term life insurance is the best type of insurance for an individual who has borrowed money and requires monthly payments, offering coverage without cash value accumulation.
Explanation:
Term life insurance is more suitable for an individual who has just borrowed $10,000 on a 5-year installment loan requiring monthly payments. Compared to whole life insurance, which builds up cash value and is like a forced savings account, term life insurance is focused solely on providing coverage against premature death without accumulating cash value. This makes it a more cost-effective option for individuals primarily seeking financial protection for their loved ones.
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