Question

Which of the following is an advantage that policyowners of adjustable life plans hold over other life insurance plans?

A. Fixed interest rates for additional loans
B. Ability to distribute dividends to new policies
C. Reduced policy fees for new coverage
D. No policy fees for new coverage added

Answer 1

Policyowners of adjustable life plans have the advantage of being able to distribute dividends to new policies.

Step-by-step explanation:

The advantage that policyowners of adjustable life plans hold over other life insurance plans is the ability to distribute dividends to new policies. Dividends are a share of the insurance company's profits that are paid to policyowners. With adjustable life plans, policyowners have the option to use these dividends to purchase additional coverage or other policy benefits.