Question

When dividends are issued, the policyowner has the following dividend options in utilizing a return except:

a) accelerated endowment
b) cash dividend
c) life income
d) one year term dividend

Answer 1

When dividends are issued, the policyowner has different options to utilize the return, including accelerated endowment, cash dividend, and life income. However, one year term dividend is not among the available options.

Step-by-step explanation:

When dividends are issued, the policyowner has different options to utilize the return. These options include:

• Accelerated endowment: This option allows the policyowner to receive the endowment amount earlier than the predetermined maturity date.
• Cash dividend: This option gives the policyowner a direct payment in the form of cash.
• Life income: With this option, the policyowner is paid regular income for their lifetime.

The option that is not among the available dividend options listed is one year term dividend.