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