Pennsylvania Life and Health Insurance Exam Practice Question
The accumulated cash value of a whole life insurance policy becomes the
Correct Answer: C
Rationale: The accumulated cash value of a whole life insurance policy serves as a policy loan value, allowing the policyowner to borrow against it. This feature provides liquidity and financial flexibility.
Option A is incorrect because the face amount is the death benefit, not the cash value. Option B misrepresents the cash value; it is not primarily used for offsetting expenses. Option D, while related to the cash value, describes a specific use rather than the fundamental nature of the cash value itself. Thus, option C accurately reflects the primary role of the accumulated cash value.
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