Siegfried, 67, has a significant cash surrender value (CSV) built up in the life insurance policy he purchased on December 31, 1982. He requires cash for living expenses and has turned to you for assistance. You recommend that Siegfried collateralize the cash surrender value (CSV) and take out a series of loans secured by the policy's CSV. Which of the following is an accurate statement about this strategy?

a)The payments will increase the death benefit that is paid.

b)The loan proceeds will be paid to Siegfried tax free

.c)The estate value and taxes will increase if interest on the loans is capitalized.

d)The payments will be used to calculate net income for Old Age Security claw-backs.