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Life · Chapter 5 · Dividends

Paid-Up Additions (Dividend Option)

Definition
The dividend buys small amounts of single-premium permanent insurance at the insured's current age, no proof of insurability. INCREASES death benefit and cash value.
Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.

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Verified against primary sources · 2026-08-10