Participating Policy

Paid-up additions — The paid-up additions option uses each dividend to buy small amounts of fully paid-up whole life insurance, thereby increasing both the death benefit and the cash value without requiring evidence of insurability. It is one of the standard dividend options, along with cash, accumulation at interest, reduced premium, and one-year term. The purchased additions are paid up and cannot lapse, so they add permanent value to the policy. This option is popular with clients who want their coverage to grow over time using the policy's dividends. The additions also earn future dividends themselves.

National insurance concept

Purchase additional paid-up whole life insurance, increasing both death benefit and cash value — The paid-up additions dividend option uses the dividend to purchase small amounts of fully paid-up whole life insurance. Each addition has its own cash value and death benefit, so over time both the total death benefit and the cash value of the policy increase. Because the additions are paid up, no further premiums are required for them. This option is a popular way to build the policy's value without medical evidence, and it can be an effective tool for increasing estate value or funding future needs.

National insurance concept