Ken has a variable life policy and recently learned that he can borrow against its cash value to help pay for some of the expenses he’s incurring while pursuing a graduate degree. Which of the following statements about the loan he can get is true?
Explanation
Answer: C - The true statement is that Ken never has to repay the loan, but if he chooses not to do so, his wife, Barbie, won’t get as much when he dies. He can borrow up to at least 75% of the cash value, but there is interest charged on the loan. (In essence, he’s paying interest to himself, though.)
