ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Anyone one can borrow money from a life insurance company.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Simply put, yes-you can borrow against your life insurance if the plan you choose has cash value. Cash value is a portion of your life insurance payment put into a savings-like account that grows tax-free over time.
Detailed explanation-2: -In order to avail a loan on an insurance policy, the policy must acquire a surrender value. The amount sanctioned for the loans is usually 85% to 90% of the policies surrender value.
There is 1 question to complete.