One-Year Term Dividend Option
A dividend option using the dividend to buy one-year term insurance equal to the dividend, combining with paid-up additions for rising coverage.
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Under the one-year term dividend option, the policy dividend is used to:
Purchase one-year term insurance in an amount equal to the policy's cash value — The one-year term dividend option uses the dividend to buy a one-year term insurance benefit equal to the policy's cash value, boosting the death benefit during the year while the permanent coverage continues unchanged. It is sometimes called the fifth dividend option. This maximizes the total coverage for the current year at a relatively low cost because term insurance is inexpensive. The option must be renewed each year with a new dividend. It provides extra protection during the years when a family's insurance needs are greatest without requiring a higher premium outlay.
National insurance concept
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