An insured stopes making payments on a loan taken from his cash value policy. What will most likely happen?

An insured stopes making payments on a loan taken from his cash value policy. What will most likely happen?




A. The insurer will not permit the policy owner to take out any more loans

B. The policy will be reduced to an extended term option

C. The policy will terminate when the loan amount with interest equals or exceeds the cash value

D. The insurer will increase the interest rate on the loan and charge a penalty



Answer: C. The policy will terminate when the loan amount with interest equals or exceeds the cash value

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