Advantages of selecting the paid-up additions dividend option in a life insurance policy include which of the following?
I.Evidence of insurability is not required to purchase additional insurance.
II.The additions are purchased at net rates without a loading for expenses.

Question

Quizplus · Accepted Answer

Both I and II are advantages of selecting the paid-up additions dividend option in a life insurance policy. With this option, the policyholder can purchase additional insurance without having to provide evidence of insurability, which can be helpful if the insured's health has deteriorated since the policy was issued. Additionally, the additions are purchased at net rates without a loading for expenses, which can make this option more cost-effective in the long run.

Advantages of Selecting the Paid-Up Additions Dividend Option in a Life