Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?
A)The interest rates are low, ranging from 4 to 6 percent.
B)Should the insured person die before repaying the loan, the life insurance company will forgive the loan.
C)Many people fail to pay back such loans because no fixed schedule of repayment is established.
D)Insurance companies do not pressure borrowers to repay the debt.

Question

Quizplus · Accepted Answer

When the insured person dies before repaying the loan, the life insurance company does not forgive the loan. Instead, the outstanding loan amount plus interest is deducted from the death benefit that is paid out to the beneficiaries.

Which of the Following Is Not True Regarding Loans Based