Question

All of the following are types of dividend options, EXCEPT:

A. Paid-up additions
B. Reduced paid-up insurance
C. One year term insurance
D. Accumulate at interest

Answer 1

The correct answer is C. One year term insurance, which is not a dividend option. Dividend options in life insurance include paid-up additions, reduced paid-up insurance, and accumulate at interest.

Step-by-step explanation:

All of the following are types of dividend options, EXCEPT: A. Paid-up additions B. Reduced paid-up insurance C. One year term insurance D. Accumulate at interest. This question pertains to dividend options in life insurance policies. Dividend options are choices the policyholder has for how any dividends on their whole life insurance policy can be utilized.

The correct option that is NOT a type of dividend option is C. One year term insurance. Dividend options typically relate to participating whole life insurance policies where the policyholders share in the profits of the insurance company through the issuance of dividends. These dividends can be used to purchase paid-up additions (additional coverage), leave the dividend to accumulate at interest within the policy, or use the dividend to reduce future premiums or to increase the policy's cash value (as in reduced paid-up insurance).

One year term insurance, on the other hand, is not a dividend option but rather a type of insurance coverage.

Answer 2

Paid-up additions is not a type of dividend option, while reduced paid-up insurance, one year term insurance, and accumulate at interest are all types of dividend options.

Step-by-step explanation:

The correct answer is A. Paid-up additions. Paid-up additions is not a type of dividend option; it refers to additional life insurance policies that are purchased using the policyholder's dividend payments. On the other hand, B. Reduced paid-up insurance, C. One year term insurance, and D. Accumulate at interest are all types of dividend options.