4) Rachel required a mortgage for the purchase of her home. The bank where she obtained the mortgage also sold her mortgage life insurance. When she pays down the principal on her mortgage, what happens to her coverage under her mortgage life insurance?

I. If Rachel dies, the amount of her mortgage life insurance will cease, and the mortgage will be paid off.

II. The bank is protected should Rachel default on her mortgage.

III. The amount of her mortgage life insurance is linked to the declining balance of her mortgage and will go down over time.

IV. The amount of her mortgage life insurance is linked to the declining balance of her mortgage and will cease once the mortgage is fully paid.

V. The amount of her mortgage life insurance will not change over the period of her mortgage.

VI. The amount of her mortgage life insurance is linked to her mortgage and will steadily increase over time.

a) I, II, IV and VI

b) II, III and V

c) I, III and IV

d) I and II

e) I and VI