Author Question: Advantages of selecting the paid-up additions dividend option in a life insurance policy include ... (Read 63 times)

vinney12 · **on:** Jul 11, 2018

Advantages of selecting the paid-up additions dividend option in a life insurance policy include which of the following?

I. Evidence of insurability is not required to purchase additional insurance.
II. The additions are purchased at net rates without a loading for expenses.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

Which of the following statements about dividend options is (are) true? I. The interest on dividends left to accumulate with the insurer is not considered to be taxable income. II. Paid-up additions are additional units of whole life insurance.

A) I only
B) II only
C) both I and II
D) neither I nor II