Questions: A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a(n) rate loan A. Fluctuating B. Fixed C. Increasing D. Variable

The answer is the last one (D): Variable.

Explanation for each option:

A. Fluctuating - While "fluctuating" suggests changes over time, it is not the standard term used in the context of life insurance policy loans.

B. Fixed - A fixed rate loan implies that the interest rate remains constant over the life of the loan, which does not apply here since the interest rate is described as varying over time.

C. Increasing - An increasing rate would suggest that the interest rate only goes up, which is not necessarily the case for a loan where the rate can vary in both directions.

D. Variable - This is the correct term used to describe a loan where the interest rate can change over time, reflecting the conditions described in the question.

In summary, the correct answer is D: Variable, as it accurately describes a loan with an interest rate that may vary over time.