QuestionAugust 4, 2025

AUL policy deducts all of the following charges from the cash value monthly EXCEPT A) pure insurance and expenses B) pure insurance C) expenses D) loan interest

AUL policy deducts all of the following charges from the cash value monthly EXCEPT A) pure insurance and expenses B) pure insurance C) expenses D) loan interest
AUL policy deducts all of the following charges from the cash value monthly EXCEPT
A) pure insurance and expenses
B) pure insurance
C) expenses
D) loan interest

Solution
4.7(175 votes)

Answer

D) loan interest Explanation 1. Identify Charges Deducted from Cash Value Universal Life (UL) policies typically deduct charges for pure insurance and expenses, but not loan interest. 2. Determine the Exception Loan interest is not deducted from the cash value; it is added to the loan balance.

Explanation

1. Identify Charges Deducted from Cash Value<br /> Universal Life (UL) policies typically deduct charges for pure insurance and expenses, but not loan interest.<br /><br />2. Determine the Exception<br /> Loan interest is not deducted from the cash value; it is added to the loan balance.
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