What Are Life Insurance Dividend Options? 
Life insurance dividend options tell the insurance company what you want to do with the dividend that is paid on a participating policy . Options depend on the company , but the most common options are : - Paid-up additions - where divididends are used to purchase paid up additions - Accumulate at interest - dividends are placed into an account at the insurance company and they earn a specificed interest rate set by the company - Reduce premium - dividends are used to pay down the premium or cover the entire premium due if the dividend is large enough to cover the premium - Purchase one year term insurance - the dividend purchases term insurance to increase total death benefit - Cash - the policy holder is simply paid the dividend as a check 