Mike and Ike are 30 year old identical twins. Both are in excellent health. Each brother purchases a life policy that has a $750 annual premium. Mike buys a 10-year renewable term policy. Ike purchases a whole life policy. All of the following statements are true EXCEPT
A) Mike's policy will develop no cash value over the policy's term
B) Ike may eventually take out a policy loan
C) Ike will have a level premium
D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance
Ans: D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance
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