Podcast
Questions and Answers
What happens when a dividend is used to buy Paid-Up Additions?
What happens when a dividend is used to buy Paid-Up Additions?
- It buys additional paid-up insurance of the same type as the base policy (correct)
- The premium rate decreases
- The death benefit decreases
- The insured's attained age becomes irrelevant
How does the total death benefit change with Paid-Up Additions?
How does the total death benefit change with Paid-Up Additions?
- Remains the same regardless of paid-up additions
- Increases by the face amount of the policy only
- Decreases over time
- Equals the face amount of the policy plus the face amounts of the paid-up additions (correct)
How does purchasing Paid-Up Additions affect the policy's total value over time?
How does purchasing Paid-Up Additions affect the policy's total value over time?
- Has no effect on the total value
- Only enhances the face amount of the policy
- Decreases the total value
- Can greatly enhance the policy's total value (correct)
What is the main characteristic of the paid-up additions option in life insurance?
What is the main characteristic of the paid-up additions option in life insurance?
How does the total death benefit of a policy with paid-up additions differ from a policy without such additions?
How does the total death benefit of a policy with paid-up additions differ from a policy without such additions?
How does purchasing paid-up additions using dividends impact the overall value of a life insurance policy?
How does purchasing paid-up additions using dividends impact the overall value of a life insurance policy?
What determines the premium rate for the paid-up additions option in life insurance?
What determines the premium rate for the paid-up additions option in life insurance?
How does the total death benefit of a policy with paid-up additions differ from a policy without such additions?
How does the total death benefit of a policy with paid-up additions differ from a policy without such additions?
How does the cumulative effect of paid-up additions impact a life insurance policy's total value over time?
How does the cumulative effect of paid-up additions impact a life insurance policy's total value over time?
