Dividend Option
Updated: 09 June 2023
What Does Dividend Option Mean?
A dividend option, in the context of insurance, refers to the choices an insured has to decide how they wish to receive the dividends under a participating life insurance policy.
Insuranceopedia Explains Dividend Option
Not all life insurance policies pay out dividends. However, for those that do, the insured is given different dividend options to decide how to use them. An insured may have any of the following method of collections: cash dividends; dividends to apply against the premium; dividends to accumulate interest; dividends to pay for additional coverage; or dividends to buy term insurance.
Related Definitions
Related Terms
Related Articles
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Inside the Details of Auto Transport Insurance: An Expert Interview
Expert Insights: The Ins and Outs of Moving Insurance
Interview With Todd Taylor On Strategizing Large Group Health Insurance
Future Trends in Pain Management Billing and Insurance: Adapting to Change
Understanding EPO Health Insurance Plans
Related Reading
Workers Compensation Statistics
Life Insurance Beneficiary Rules
What Is Temporary Life Insurance?
Revealing the Most And Least Popular U.S. Insurance Companies
More People Killed By Animals In Texas Than Anywhere Else In The U.S.
Life Insurance Statistics