YOU ASK:
What is the definition of Paid-Up Additional Insurance Option?
WE ANSWER:
The Paid-Up Additional Insurance Option refers to the option that enables the policyowner to use the dividends in the policy to buy additional life insurance. This is available to participating life insurance policies.
The policyowner can opt to increase the coverage of the existing policy and the face amount that will be added is based on the amount that the dividends can buy. The premiums are based on the current age of the insured, and not on the age when the policy was issued.
This option provides the insured with added insurance protection and also serves to increase the value of the life insurance policy.
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More insurance terms around paid-up additional insurance option:
- Paid-Up Policy
- Partial Disability
- Participating Policy
- Pay-At-The-Pump
- Payout Options
- Pension Benefit Guaranty Corporation
- Pension
- Per Capita Beneficiary Designation
- Per Stirpes Beneficiary Designation
- Peril
- Package Policy
- Over-The-Counter (OTC)
- Original Equipment Manufacturer Parts (OEM)
- Ordinary Life Insurance
- Ordinance or Law Coverage
- Options
- Operating Expenses
- Open Competition States
- Ocean Marine Insurance
- Occurrence Policy