Which of the following statements about life insurance policy loans is

Which of the following statements about life insurance policy loans is (are) true?

I. Interest is not required on a life insurance policy loan, as the policyholder is borrowing his or her own money.
II. If there is an outstanding loan when the insured dies, payment to the beneficiary is reduced by the amount of the loan.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: B