The Cash Value of Some Types of Life Insurance Policies

question 69

True/False

The cash value of some types of life insurance policies can be used as collateral for loans.

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Definitions:

Necessarily Incidental

Activities or actions that are not central but are unavoidably part of or related to accomplishing a main activity or goal.

Borrow Money

The act of receiving funds from another party with the promise to return the principal amount along with potential interest.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with a particular responsibility, such as in a trustee-beneficiary or agent-principal relationship.

Personal Interests

Individual preferences, hobbies, or activities that a person finds enjoyable or important.