Q267
How is a policy loan different from a commercial loan?
A.
There is no legal obligation to repay a policy loan
B.
In case of policy loan, there is no need for a credit check
C.
Both A & B
AnswerD.
None of the three
Answer: Option C
Solution
Answer: Option C
Solution:
The main advantage of a policy loan over other loans is that there is no credit check; the interest rate is usually much lower; the policyholder can pay back the loan according to virtually any repayment schedule; and, in fact, the policyholder is not even legally obligated to pay back the loan.