Definition of "Dividend option"

Kenneth Rossi real estate agent
Kenneth Rossi, Real Estate Agent Coastal Properties Group International

Methods of handling policyholder dividends. In a participating life insurance policy, dividends are paid to the policy owner according to which of the following options is selected:

  1. applied to reduce premiums;
  2. paid in cash;
  3. purchase increments of paid-up life insurance;
  4. left on deposit with the insurance company to accumulate at interest;
  5. purchase extended term life insurance for one year in the amount a dividend can buy (Fifth Dividend Option). Some health and property insurance policies have dividend options.

Need help from a real estate agent?

Buy Sell Rent

I agree to receive FREE real estate advice.

Are you a realtor and want to become a member?

Residential Rental Commercial

I agree to receive FREE real estate advice.

Have a question or comment? We're here to help.


*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions