Which of the following is a common dividend option found in a participating life insurance policy?

Question

Quizplus · Accepted Answer

Paid-up additions are a common dividend option found in a participating life insurance policy. With paid-up additions, the policyholder can use dividends to purchase additional coverage that is fully paid up and will earn dividends of its own. This can help increase the policy's cash value and death benefit over time. The other options listed (reduced paid-up insurance, fixed period, and life income) are also dividend options, but are less commonly found in participating life insurance policies.

Which of the Following Is a Common Dividend Option Found