Final answer:
The not true statement is option d: It can be used to pay policy premiums.
Step-by-step explanation:
The not true statement regarding the cash value in an ordinary whole life policy is d. It can be used to pay policy premiums.
The cash value in an ordinary whole life policy grows tax-deferred, meaning it accumulates without being subject to income taxes until the policyholder withdraws the funds.
The cash value can also be used as a policy loan without affecting the death benefit. This means that the policyholder can borrow money from the cash value, while keeping the death benefit intact.
Furthermore, the cash value is a nonforfeiture value that is fully guaranteed to the policyowner. This means that even if the policy lapses or is surrendered, the policyholder will receive the guaranteed cash value.