All of the following are dividend options EXCEPT A. Reduction of premium B. Paid-up additions

All of the following are dividend options EXCEPT

A. Reduction of premium

B. Paid-up additions

C. Fixed period installments.

D. Accumulated at interest

Answer. A. Reduction of premium

Generally, in case, dividends happen to accumulate in a particular policy, the holder receives multiple choices for using these dividends. These options include:

B. Paid-up additions: Giving the share dividends as paid-up premium that amounts to additional insurance coverage of higher death benefit amount of the policy.

C. Fixed period installments: Therefore, the latter will be a place where the dividends will be paid to the investors in the form of either a fixed income or another form of the payment.

D. Accumulated at interest: Building your saving automatically by earning interest within the policy, which may be withdrawn later without requiring a new policy for that purpose.

But, a reduction is premium should not be considered payment of dividends. Dividends are often credited to the policy and utmiized to bring more benefits or pay addittioal premiums, but they cannot be payable directly to us to mitigate the premiums. Thus, only one of the given alternatives “Let’s accept the suggestion of major ‘B. Reduction of cost” can be interpreted as mirroring the opposite to the rest of the given selection.