Another possible source of loans are a life 【M1】______ insurance policy. When you study in

Another possible source of loans are a life 【M1】______

insurance policy. When you study insurance,

you will learn that some types of life insurance

have cash or loan value. Anyone who owns 【M2】______

this type of insurance may borrow up to

the number of its cash value. 【M3】______

Life insurance loans are easy to obtain.

Tile rate charged is less than that for almost

any other type of loan available for consumers. 【M4】______

This is because the lender takes none risk. 【M5】______

Also, borrowers may take as long as they want

to repay their loans. Although that may seem

likely an advantage, it can also be a disadvantage 【M6】______

When a borrower is not required to

repay a loan within certain period of time, it is easy 【M7】______

to let it run on and on. This increases the dollar

cost of a loan as the loan continues. Also the 【M8】______

amount the insurance company will pay for case 【M9】______

of death is reduced by the amount of the loan.

For example, suppose that someone with

$10,000 of insurance borrows $2,000

and dies, leaving the loan unpaying. The insurrance 【M10】______

company would pay only $8,000 to the

person entitled to receive the money. Of

course, if the $2,000 loan had been obtained

from another source, it would still have to be paid.

【M1】