If an individual wants to purchase $500,000 in whole life insurance but is only able to purchase $300,000, what option do they have to increase the value up to $500,000 of death insurance?
Explanation
Answer: D - If an individual wants to purchase $500,000 in whole life insurance but is only able to purchase $300,000, they can purchase a term policy for the remaining $200,000. This will allow for the full $500,000 in death insurance should the insured die. Once policy dividends are declared, they can be used to purchase additional paid-up insurance adding to the whole life policy and deducting it from the term policy, while maintaining the face value of the policy.
