Policyholders who have cash-value life insurance policies can obtain loans based on the cash values built up in their policies.

Question

Quizplus · Accepted Answer

This statement is true. Cash-value life insurance policies allow policyholders to borrow against the cash value that builds up over time. The loans are typically charged interest and may reduce the death benefit payable to beneficiaries if not paid back in full.

Policyholders Who Have Cash-Value Life Insurance Policies Can Obtain Loans