Answered

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The paid-up addition option uses the dividend
O
A. ? To accumulate additional savings for retirement.
о
B. To purchase a smaller amount of the same type of insurance as the original
policy.
C. To reduce the next year's premium.
D. To purchase a one-year term insurance in the amount of the cash value.

Sagot :

Answer:

B. To purchase a smaller amount of the same type of insurance as the original policy.

Explanation:

The policyholder may utilize dividends to buy more paid-up whole life insurance through the paid-up addition option. In doing so, you can raise the policy's death benefit and cash value without having to pay more premiums. These paid-up additions function similarly to fully paid mini-policies that gradually accrue cash value.

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