Dictionary of Business Terms: dividend addition
dividend addition
life insurancein addition to the face value of the policy, purchased with dividends of the policy.
Dictionary of Insurance Terms: dividend addition
dividend addition
option in a participating policy under which dividends are used to purchase fully paid-up units of whole life insurance. This option deserves careful consideration by young families since it allows the purchase of extra life insurance without having to take a physical examination. Paid-up additions generate dividends and cash values that in turn will generate additional dividends and cash values.
