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1.
In a whole life insurance policy, cash value refers to _______.
The amount of the policy you will get if you surrender your policy before you die. As opposed to face value, which is what your dependents will get, cash value is what you will get if you should cancel your policy early.
2.
You can borrow the cash value of your life insurance policy through _______.
Tax-free loans. You can take out the cash value of your permanent policy through tax-free loans.
3.
Policy loans never affect the cash value of your life insurance policy.
False. Taking out a loan on your policy can affect its cash value.
4.
What is the main purpose of life insurance?
To provide financial support to your beneficiaries after your death. Life insurance is ultimately meant for your beneficiaries.
5.
A whole life insurance policy can be used to protect your pension in the event of your death.
True. You can use a whole life policy to protect your pension.