Definitions for "Dividend Options"
The various methods available to an insured electing to receive dividends under a life insurance policy.
Several alternatives that participating policyowners can choose from to indicate the manner in which they want to receive their share of the insurance company's divisible surplus. See accumulation at interest option, additional term insurance option, automatic dividend option, cash payment option, dividend accumulations, enhancement type policy, paid-up additions, and premium reduction option.----------[ Back
Policy dividends on a participating life insurance policies may be used in any of the following ways: Applied to Reduce Premiums, Left on Deposit to Accumulate at Interest, Paid in Cash, Purchase Paid-Up Additions, and Purchase Extended Term Life Insurance.