Question

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

a)Nonforfeiture option.
b)Guaranteed insurability rider.
c)Paid-up additions option.
d)Cost of living provision.

Answer 1

The correct answer is c) Paid-up additions option. This option allows the policy owner to make additional premium payments to increase the face amount of the policy without proving insurability.

Step-by-step explanation:

The correct answer in this case is c) Paid-up additions option.

A paid-up additions option allows the policy owner to make additional premium payments to the policy to increase the face amount of the policy without proving insurability. The policy owner can take advantage of this option and increase the death benefit without going through the underwriting process again.