Richard, age 35, owns an ordinary life insurance pol- icy in the amount of $250,000. The policy is a partici- pating policy that pays dividends. Richard has a num- ber of financial goals and objectives. For each of the following situations, identify a dividend option that could be used to meet Richard's goals. Treat each situ ation separately. Richard finds the premium payments are finan cially burdensome. He wants to reduce his annual premium outlay.

b. Richard has leukemia and is uninsurable. He needs additional life insurance protection.

c. Richard wants to accumulate additional cash for a comfortable retirement.

d. Richard would like to have a paid-up policy at the time of retirement.

e. Richard has substantial earned income that places him in a high marginal income-tax bracket. He wants the insurer to retain the dividends, but he does not want to pay income tax on the investment earnings.