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Finra Series-6 Exam - Topic 7 Question 11 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 11
Topic #: 7
[All Series-6 Questions]

Ken has a variable life policy and recently learned that he can borrow against its cash value to help pay for some of the expenses he's incurring while pursuing a graduate degree.

Which of the following statements about the loan he can get is true?

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Suggested Answer: C

The true statement is that Ken never has to repay the loan, but if he chooses not to do so, his wife, Barbie, won't get as much when he dies. He can borrow up to at least 75% of the cash value, but there is interest charged on the loan. (In essence, he's paying interest to himself, though.)


by Larae at May 09, 2022, 09:22 PM

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Stefania
4 months ago
If he doesn't repay, Barbie's payout will be affected. That's a big deal!
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Frederica
4 months ago
Actually, he can borrow more than 50% depending on the policy terms.
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Leonida
4 months ago
Wait, he doesn't have to repay it? That sounds too good to be true.
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Serita
4 months ago
I thought the loan would be interest-free since it's his own money?
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Dan
5 months ago
You can definitely borrow against the cash value of a variable life policy.
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Alline
5 months ago
I’m pretty certain that you can borrow against the cash value of a variable life policy, so D doesn’t sound right. But I can’t recall the exact borrowing limits.
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Ronny
5 months ago
I think I saw a question like this before, and it mentioned that loans against cash value do accrue interest, so option B seems wrong to me.
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Maryann
5 months ago
I remember something about how much you can borrow from a variable life policy, but I’m not sure if it’s a strict percentage or if it depends on the policy duration.
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Renay
5 months ago
I feel like I read that you don’t have to repay the loan, but it affects the death benefit. So, C might be the right answer, but I’m not completely sure.
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Dell
5 months ago
I'm pretty sure the valid example for the ---source attribute is URI://mydir/test.pdf, since that's a valid URI format.
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Gracia
5 months ago
This question seems straightforward, but I want to make sure I understand the details correctly.
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