What is the minimum percentage of cash value that must be available for a policy loan after the loan has been in force for three years?

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Multiple Choice

What is the minimum percentage of cash value that must be available for a policy loan after the loan has been in force for three years?

Explanation:
A cash-value life policy allows borrowing against the accumulated cash value. After the policy has been in force for three years, regulators require a minimum portion of that cash value to be available for a loan. That minimum is 75% of the cash value. So you could borrow at least three quarters of the cash value; any loan plus interest will reduce the death benefit payable. The other percentages are not the standard minimum in this scenario, with 75% being the tested figure.

A cash-value life policy allows borrowing against the accumulated cash value. After the policy has been in force for three years, regulators require a minimum portion of that cash value to be available for a loan. That minimum is 75% of the cash value. So you could borrow at least three quarters of the cash value; any loan plus interest will reduce the death benefit payable. The other percentages are not the standard minimum in this scenario, with 75% being the tested figure.

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