Question

K needs funds and needs to maintain the life insurance she has at the same time. Which of the following should K do with her traditional whole life policy? A) Surrender the policy B) Take out a policy loan C) Continue paying premiums D) Cash out the policy

Answer 1

C) Continue paying premiums

If K needs funds and wants to maintain her life insurance coverage, the most appropriate option would be to continue paying the premiums on her traditional whole life policy. This way, she can keep her life insurance in force while still having access to the death benefit coverage provided by the policy. Surrendering the policy or cashing it out would typically result in the loss of coverage, and taking out a policy loan could have implications for the policy's performance and potential tax consequences. Continuing to pay premiums allows K to maintain her life insurance protection.