Homework Answers
Your required answer is option D i,e, neither I or II
Because interest has to pay on life insurance policy loan however interest rate is comparatively low and policy loan is not required to pay within 3 years it is required to pay before expiry of insurance policy therefore both statement are incorrect.
I hope this clear your doubt.
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ANSWER :
Option D .
Interest is required to be paid on the life insurance loan. There is no limit of 3 years on repayment of loan. If the loan is not fully repaid, due amount of loan is deducted from the settlement amount.
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