Questions: Chapter 2. Types of Life Policies / Chapter Quiz pes of Life Policies Question 14 of 15 An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? A. Universal life B. Term life C. Adjustable life D. Limited pay SUBMIT ANSWER

The answer is the first one (A): Universal life.

Explanation for each option: A. Universal life - This type of policy allows the policyholder to withdraw a portion of the policy's cash value, subject to certain limits and fees. This matches the scenario described in the question. B. Term life - Term life insurance does not accumulate cash value, so the policyholder cannot withdraw any cash from it. This option is incorrect. C. Adjustable life - While adjustable life insurance policies offer flexibility in terms of premiums and coverage, they do not typically allow for cash value withdrawals in the same manner as universal life policies. This option is less likely. D. Limited pay - Limited pay life insurance policies require premiums to be paid for a certain period, but they do not specifically address the ability to withdraw cash value. This option is also less likely.

Summary: The insured most likely has a Universal life policy, as it allows for cash value withdrawals with certain limits and fees, fitting the scenario described in the question.