Which statement is true regarding Paid-Up Additions Dividend Option?

The statement regarding the Paid-Up Additions Dividend Option that is accurate is that eventually, no more premiums will be due on the addition to the policy. This is a critical aspect of the Paid-Up Additions feature in whole life insurance.

Paid-Up Additions are additional amounts of paid-up insurance that a policyholder can purchase using the dividends received from their whole life policy. Once these additions are paid for, they do not require any further premiums. This allows the policyholder to increase their death benefit and cash value without the need for ongoing premium payments, as the additional coverage becomes fully paid for at the time of purchase.

The other options are less accurate in their claims. For instance, while Paid-Up Additions can contribute to the growth of cash value due to the added insurance coverage, they do not inherently speed up cash value growth compared to the base policy's performance. Moreover, premiums are not eliminated for any insurance policy; they simply may not be required on the Paid-Up Additions after their initial purchase. Lastly, while dividends can increase the amount of insurance through Paid-Up Additions, they do not accelerate the rate at which dividends are credited to the policy itself. Hence, the key takeaway is that no further premiums will be due on these additional