Question

Which life insurance dividend option does not increase a policy's cash value?

Select one:
a. Cash payment
b. Accumulate at Interest
c. Paid-up insurance
d. Paid-up additions

Answer 1

The cash payment option does not increase a policy's cash value.

Step-by-step explanation:

The life insurance dividend option that does not increase a policy's cash value is the Cash payment option. When the policyholder chooses the cash payment option, they receive the dividends generated by the insurance company in the form of a cash payment. This option does not increase the policy's cash value because it does not reinvest the dividends into the policy.