question 5 of 60\nwhich of the following dividend options is available to the policyowner in a participating…

question 5 of 60\nwhich of the following dividend options is available to the policyowner in a participating policy?\na take a loan against the dividends\nb hand the dividends to the beneficiary\nc purchase reduced paid - up insurance\nd apply the dividends to reduce the next years premium

question 5 of 60\nwhich of the following dividend options is available to the policyowner in a participating policy?\na take a loan against the dividends\nb hand the dividends to the beneficiary\nc purchase reduced paid - up insurance\nd apply the dividends to reduce the next years premium

Answer

Brief Explanations:

In an participating policy, policyowners can use dividends to purchase reduced - paid up insurance. Taking a loan against dividends is not a typical dividend option. Handing dividends to the beneficiary is not a standard dividend option. Applying dividends to reduce next - year's premium is also not one of the main traditional dividend options in the context of participating policies.

Answer:

C. Purchase reduced paid - up insurance