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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