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Advantages of Selecting the Paid-Up Additions Dividend Option in a Life

question 59

Multiple Choice

Advantages of selecting the paid-up additions dividend option in a life insurance policy include which of the following?
I.Evidence of insurability is not required to purchase additional insurance.
II.The additions are purchased at net rates without a loading for expenses.


Definitions:

Market Portfolio

encompasses all available assets in the market, with each asset weighted according to its market capitalization.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, indicating the level of investment risk.

Cyclical Stock

Shares of companies whose earnings are heavily influenced by economic cycles, often rising during expansions and falling during recessions.

Countercyclical Stock

A stock of a company whose performance is inversely related to the economy's overall performance; it tends to do well during economic downturns.

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