Answer:
Reaches or exceeds the cash value.
Explanation:
A traditional whole life policy is an insurance policy or plan that covers the entire life of an individual. It also provides or gives a certain amount to the beneficiaries of the individual in case the individual dies.
A cash value in traditional whole life policy is the amount a person on a traditional life policy receives if he or she decided to quit the life policy as well as forfeit the payment to his or her beneficiaries of he or she dies.
A policy loan is the loan that a person takes from his or her life traditional life policy which must not exceed the cash value of the traditional life policy. A policy loan also comes loan interest that must be paid on a timely basis.
When the outstanding policy loan is higher than the case value of the traditional life policy the insurance company may cancel the traditional life policy.
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