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In Business / College | 2025-07-03

Under what type of insurance plan is the cash value of a permanent policy used to pay the policy premiums through policy loans?
A. Value-based
B. Minimum deposit
C. Back door
D. Automatic premium loan

Asked by kmullins67

Answer (2)

The correct answer is D. Automatic premium loan, which allows permanent life insurance policy cash values to pay premiums through policy loans. This feature prevents the policy from lapsing due to non-payment. It's essential to be aware that unpaid loans can reduce the eventual death benefit. ;

Answered by GinnyAnswer | 2025-07-03

The correct answer is D. Automatic premium loan, which allows the cash value of a permanent insurance policy to pay for premiums through policy loans. This feature helps keep the policy active, but any outstanding loans may reduce the eventual death benefit.
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Answered by Anonymous | 2025-07-04

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