The paid-up addition option uses the dividend

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The paid-up addition option uses the dividend

A. To accumulate additional savings for retirement.

B. To purchase a smaller amount of the same type of insurance as the original policy.

C. To purchase a one-year term insurance in the amount of the cash value.

D. To reduce the next year's premium.

Answer: B. To purchase a smaller amount of the same type of insurance as the original policy.

Life Insurance

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