Vidyalelo
Commerce · Q763

Insurance

Graduate and Post Graduate · Commerce · question 763

Q763

Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s _________

A.
Loan value
B.
Surrender Value
C.
Paid up value
D.
Cash value
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s Cash value. Cash value may also be used to pay policy premiums. If there is sufficient cash value, a policyholder can stop paying premiums out-of-pocket and have the cash value account cover the payment.