Summer has a universal life (UL) insurance policy with a face value of $300,000. The policy has a cash surrender value (CSV) of $30,000 and offers a level death benefit plus account value. Summer’s policy is based on her own life, with her husband Michael as revocable beneficiary. The adjusted cost base (ACB) of Summer’s policy is $27,000. Which of the following statements about Summer’s UL is CORRECT? a) If Summer dies, Michael will receive $330,000, $300,000 of which is tax-free. b) If Summer dies, Michael will receive $330,000, $327,000 of which is tax-free. c) If Summer surrenders the policy, she will have a taxable policy gain of $3,000. d) If Summer surrenders the policy, she will have a taxable policy gain of $30,000
