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 loading for expenses.

Question

Quizplus · Accepted Answer

The paid-up additions dividend option allows the policyholder to purchase additional insurance without providing evidence of insurability, which is a significant advantage. Additionally, the additions are purchased at net rates without loading for expenses, which means the policyholder gets more insurance for their money. Therefore, both options I and II are correct.

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