YOU ASK:
What is the definition of Additional Term Insurance Option?
WE ANSWER:
The Additional Term Insurance Option allows the insurance policy owner of a participating insurance policy to use the year's policy dividend to pay for additional insurance. The additional insurance bought covers one year. This option is also called the fifth dividend option. The amount of insurance bought for the year depends on the amount of dividends available, as well as other pricing factors, such as the insured's age. Depending on the policy, there may also be limitations to the amount of additional insurance you can buy.
This option may also allow the insured person to buy term insurance for his/her the spouse and children.
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More insurance terms around additional term insurance option:
- Adjustable Life Insurance
- Adjuster
- Admitted Assets
- Admitted Company
- Adverse Selection
- Affinity Sales
- Aftermarket Parts
- Agency Companies
- Agent
- Aleatory Contract
- Additional Living Expenses
- Actuary
- Actual Cash Value
- Accumulation at Interest Dividend Option
- Account Receivables
- Accidental Death Benefit (ADB)
- Accidental Death and Dismemberment (AD&D) Benefit
- Accident and Health Insurance
- Accelerated Death Benefits
- Absolute Assignment