Who can access their life insurance policy cash value through a partial surrender but not through a loan?

The correct choice regarding who can access their life insurance policy cash value through a partial surrender but not through a loan is associated with universal life insurance policies. Universal life insurance allows the policyholder to withdraw cash value through partial surrenders, which reduces the death benefit accordingly. This feature facilitates direct access to the accumulated cash value without incurring debt against the policy.

In contrast, loans against a life insurance policy involve borrowing against the cash value, which must be paid back with interest. If not repaid, any outstanding loan balance will reduce the death benefit. Therefore, individuals with certain types of life insurance, like term life insurance or universal life insurance, cannot access cash value since term policies do not accumulate any cash value, and universal policies allow for surrender but can also be accessed through loans.

It’s important to note that variable life insurance policies, like that owned by Tonya, also allow access to cash value but typically involve more investment risk and outcomes may vary based on market performance. Whole life policies, such as Abe's, accumulate cash value and can be borrowed against but also provide partial surrender options. Thus, the unique combination of features in a universal life policy makes it the only specific type mentioned that allows for cash access through a partial surrender without