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Paid-Up Additions in Insurance
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Paid-Up Additions in Insurance

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Questions and Answers

What is the premium rate based on for the paid-up additions option?

  • The total death benefit
  • The insured's attained age at the time of purchase (correct)
  • The insured's income level
  • The face amount of the policy
  • How does the total death benefit differ from the face amount of the policy for policies with paid-up additions?

  • It is greater than the face amount (correct)
  • It is lower than the face amount
  • It is calculated based on the insured's income level
  • It is equal to the face amount
  • How does the cumulative effect of paid-up additions impact the policy's total value over time?

  • It has a minimal impact on the policy's total value
  • It greatly enhances the policy's total value (correct)
  • It decreases the policy's total value
  • It has no effect on the policy's total value
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