All of the following statements about universal life insurance are tru

All of the following statements about universal life insurance are true EXCEPT

A) Interest is credited to the policy’s cash value each month.
B) Any withdrawal of a policy’s cash value reduces the amount of the death benefit.
C) Interest credited to a policy’s cash value is taxable for the policyowner in the year credited.
D) The policyowner can add to a policy’s cash value at any time subject to policy guidelines.

ANSWER

Answer: C