Question

Which of the following life insurance policies allows a policy-owner to take out a loan from the policy's cash value?

1) Term life insurance
2) Whole life insurance
3) Universal life insurance
4) Variable life insurance

Answer 1

Whole life insurance policies allow policy-owners to take out a loan from the policy's cash value.

Step-by-step explanation:

In the context of life insurance policies, the type that allows a policy-owner to take out a loan from the policy's cash value is Whole life insurance. Whole life insurance policies have a cash value component that accumulates over time, and policy-owners can borrow against this cash value if needed.