On a participating traditional certificate, additional death benefit that is purchased and fully paid for through the use of dividends. Paid-up additions are simply small, single premium, paid-up coverage.
Amounts of life insurance purchased by policy dividends and added to the original life insurance policy to increase the death benefit and cash values. These additions do not require the further payment of premiums. With variable life insurance, paid-up additions can also be purchased by making additional premium payments.
(WL, SWL) Each dividend paid is left in the policy under the Paid-Up Additions dividend option. It is used to buy a single premium life insurance “policy” for whatever amount it will purchase to enhance accumulation values and death benefits.