Life Insurance Policy Provisions, Options, and Riders
What does an owner gain from paid-up additions that the one-year term dividend option does not provide?
Answer and explanation
Answer: A. Paid-up additions are permanent, so they accumulate cash value and earn dividends themselves, whereas one-year term buys a larger but temporary amount. Both persist in the sense that additions already bought remain, and neither changes surrender charges.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, paid-up additions
More life insurance policy provisions, options, and riders questions
- How do reduced paid-up and extended term differ in what each keeps from the original policy?
- How does a cost of living (COLA) rider adjust policy coverage over time?
- How does a joint and survivor life income differ from a joint life income?
- How does a long-term care (LTC) rider attached to a life policy fund care expenses?
- How does a partial withdrawal differ from a policy loan on a universal life policy?
- How does a survivorship clause in a common disaster provision operate?
621 New York questions like this one.
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