A life insurance policy dividend option whereby dividends are used to purchase additional, fully paid-up life insurance within a policy. This increases the face amount and the potential for increases in cash value in the policy.
Participating policies provide that policy dividends may be used as single premiums at the insured's attained age to purchase paid-up insurance as additions to the amount of insurance specified on the face of the contract.
See paid-up additional insurance option.
An option whereby the insured can leave dividends with the insurer, and each dividend is used to buy a single premium life insurance policy for whatever amount it will purchase. Also called Paid-Up Additions.
A dividend option under which dividends purchase paid-up additional insurance. Since the paid-up additional insurance may also be participating, its growth also compounds. The growth in value is tax-deferred.
An option to where an insured can pay-up insurance purchased with a policy dividend and add to the face amount of the policy.