One life insurance dividend option is to allow dividends to accumulate with compound interest with the insurance company.

Question

Quizplus · Accepted Answer

This option is known as the "accumulation at interest" dividend option, and it allows policyholders to leave their dividends with the insurance company to accumulate with compounded interest, which can then be withdrawn or used to purchase additional insurance in the future.

One Life Insurance Dividend Option Is to Allow Dividends to Accumulate