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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.
Mutual insurance company dividends are taxable.
False. Mutual insurance company dividends are a tax-free return of premium.
3.
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.
4.
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.
5.
In a whole life insurance policy, your guaranteed cash value is used to keep your premiums level.
True. The cash value in permanent insurance is used to keep your premiums from increasing over time.