Which of the Following Is Not True Regarding Loans Based

question 32

Multiple Choice

Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?

• A)The interest rates are low, ranging from 4 to 6 percent.
• B)Should the insured person die before repaying the loan, the life insurance company will forgive the loan.
• C)Many people fail to pay back such loans because no fixed schedule of repayment is established.
• D)Insurance companies do not pressure borrowers to repay the debt.

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Definitions:

Operational Issues

Challenges or problems encountered in the day-to-day running of a business, affecting its efficiency and effectiveness.

Decentralization

The distribution of decision-making powers from central authority to subsidiary levels in an organization.

Advantage

A condition or circumstance that puts one in a favorable or superior position compared to competitors.

Franchisor

A company that grants the license to an individual or group to carry out and operate a business under its brand and trademark.