Dean is the owner and insured under a $100,000 life insurance policy that has a cash value of $68,000. he takes a withdrawal of $45,000.
Which of the following statements is true? (search chapter 9)
a. Dean must use the withdrawal to purchase an immediate annuity.
b. Dean must pay interest on the withdrawal at a rate set by the irs.
c. Dean must pay back the withdrawn funds within two years or the policy will be canceled.
d. Dean's withdrawal will reduce the amount of death benefits payable to his beneficiary.
