What is the definition of Accumulation at Interest Dividend Option?

The Accumulation at Interest Dividend Option is one of the dividend options that a life insurance owner has. The policy owner can decide that whatever dividends the policy owner may receive will be left with the insurance policy so that it may earn interest.

A participating life insurance policy provides the policy holder with dividends, which the policy owner can withdraw at any time. He can also leave it on deposit with the insurance company. These dividends earn interest based on a specified interest rate. There is a guaranteed minimum interest rate. The money earned because of the interest is subject to state and federal income taxes.

Upon the death of the insured person, the company will pay the beneficiaries the death benefit, as well as any interest earned.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability