A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to the policy if there is a $5,000 partial withdrawal?

Insurance

Are you having trouble answering the question “A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to the policy if there is a $5,000 partial withdrawal?”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.

A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to the policy if there is a $5,000 partial withdrawal?

A. The policy will be used as collateral for a loan from the insurer for which interest will be charged

B. The policy will become paid up

C. The policy will immediately be voided by the insurer

D. The death benefit or cash accumulation will be reduced by the partial withdrawal

Answer: D.

You should now have gotten the answer to your question “A universal life policy has a death benefit of $125,000 and a cash accumulation value of $15,000. Generally, what will happen to the policy if there is a $5,000 partial withdrawal?”, which was part of Insurance MCQs & Answers. Thanks for choosing us.