Life Insurance Policy Provisions, Options, and Riders
What does the paid-up additions dividend option buy?
Answer and explanation
Answer: B. Each dividend is a single premium buying a small block of permanent insurance at the insured's attained age, which needs no further premium and carries its own cash value and dividends. A guaranteed insurability rider and one-year term are different things.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, paid-up additions
More life insurance policy provisions, options, and riders questions
- An owner takes a partial surrender in the fourth policy year of a universal life contract. What should be expected?
- An owner wants the original permanent insurance plan to continue for a smaller amount with no further premiums. Which nonforfeiture option fits?
- An owner wants to replace a named irrevocable beneficiary with someone else. What additional requirement applies?
- Does the grace period in section 3203(a)(1) apply to the first premium?
- 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?
621 New York questions like this one.
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