The FALSE statement is that the cash value in a preferred risk life insurance policy grows faster due to the preferred status. The cash value growth depends on the policy's performance, not on the insured's risk category.
The statement about preferred risk for Life Insurance that is FALSE is: 'Because it is preferred, the cash value will grow faster than a policy with standard rates.' Preferred risk pertains to applicants who have characteristics indicating a longer-than-average life expectancy, which qualifies them for lower premiums. The growth rate of the cash value is tied to the policy's terms and the insurer's investment performance, not the risk category of the insured.