Policy Options - Dividend Options (OCRAP) Flashcards
1
Q
OCRAP
A
Returns of excess premiums, non-taxable and non- guaranteed
2
Q
One year term
A
Company uses the dividends to purchase additional insurance in the form of
one year term insurance that increases the overall policy death benefit
3
Q
Cash option
A
The insurer sends the policy owner a check for the amount of the dividend as it is declared; usually annually
4
Q
Reduction of premium
A
The insurer used the dividend to reduce next year‘s premium
5
Q
Accumulation at interest
A
Insurance company keeps the dividend in an account where it accumulates interest 
6
Q
Paid up additions
A
Dividends are used to purchase a single premium policy in addition to the face amount of a permanent policy
