What is the maximum loan amount C can obtain from their whole life insurance policy, given a cash surrender value of $30,000?

In the context of whole life insurance policies, the cash surrender value represents the amount of money that the policyholder would receive if they decided to terminate the policy. When it comes to taking out a loan against a whole life policy, the maximum loan amount that can be obtained is typically equal to the cash surrender value of the policy.

In this case, with a cash surrender value of $30,000, the policyholder can borrow up to that amount. This means that the maximum loan amount is not determined by the face value of the policy or other factors but rather directly tied to the cash surrender value, making $30,000 the correct answer. It's important to note that while some policies may allow for borrowing against the cash value, the amount available for loaning will not exceed the cash surrender value.

This concept is a fundamental aspect of whole life policies, ensuring that borrowers have a limit based on the amount of cash value accrued in their policies.