Which statement is inaccurate regarding blanket life insurance?

In the context of blanket life insurance, the statement that the policy benefits the policyholder directly is inaccurate because blanket life insurance is specifically designed to provide coverage on a group basis rather than on an individual basis. Typically, this type of insurance is issued to cover a defined group of people—typically participants in an organization, such as students on a campus or employees in a company.

The benefits of blanket life insurance do not go directly to the policyholder; instead, they are intended to provide coverage for the individuals covered by the policy in case of loss of life. This setup means that the benefits are paid out to the beneficiaries of the individuals covered, rather than being received by the policyholder themselves.

In summary, the focus of blanket life insurance is on providing a safety net for groups rather than on individual policyholder benefits, which fundamentally aligns with the nature and purpose of this type of insurance.