Which of the following is not an advantage of using dividends to purchase paid-up additions of life insurance?

Question

Quizplus · Accepted Answer

Using dividends to purchase paid-up additions of life insurance does not require a medical exam and there are no acquisition fees or minimal expenses. Paid-up additions have their own cash value, which can provide additional coverage and investment opportunities. However, using dividends to purchase paid-up additions does produce taxable income, making it important to consider the tax implications before making this decision.

Which of the Following Is not an Advantage of Using