Final Answer:
The investment gains from a Universal Life Policy usually go toward the cash value. Option C is correct.
Step-by-step explanation:
In a Universal Life Policy, the investment gains primarily contribute to the cash value (c). Unlike term life insurance, a portion of the premiums paid into a universal life policy is allocated to the cash value, which earns interest over time. This cash value serves as a reservoir within the policy, accumulating tax-deferred funds that policyholders can access or borrow against during their lifetime.
The investment gains generated by the policy's underlying investments, typically tied to fixed interest rates or market-based returns, bolster this cash value. While the death benefit is the primary purpose of life insurance, the cash value serves as a savings component within the policy, providing flexibility and potential growth. It's important to note that the gains contribute to the cash value's growth and can be utilized for various financial needs or left to accumulate over time to enhance the policy's overall value.
Answer: c) the cash value