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In Business / College | 2025-07-07

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
A. Paid-up additions
B. Paid-up option
C. Accumulation at interest
D. Dividend accumulation option

Asked by ninetejayven

Answer (1)

The option being utilized when an insurer accumulates dividends at interest and combines it with the policy cash value to allow early payment of the policy is called the Paid-up Option. This allows policyholders to stop premium payments while still maintaining coverage. It is essential to understand the differences between paid-up options and other dividend-related choices. ;

Answered by GinnyAnswer | 2025-07-07

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