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Felix owns a participating whole life policy with a death benefit of $350,000. He purchased the policy 10 years ago and the cash surrender value
Felix owns a participating whole life policy with a death benefit of $350,000. He purchased the policy 10 years ago and the cash surrender value (CSV) is currently $88,000. Exactly 4 years ago, when the CSV was $60,000, Felix decided to take a policy loan of $50,000. The loan has a 4% interest rate, compounded annually. To date, Felix has not made any loan payments. If Felix were to surrender the policy today, how much would he receive? | ||
a) | $1,507 | |
b) | $2,000 | |
c) | $29,507 | |
d) | $30,000 |
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