What is the definition of Dividend Accumulations Option?
The Dividend Accumulations Option is an option that allows the policy owner to leave the dividends earned with the insurance company for it to earn interest.
This option is part of the dividend options available for participating life insurance policies. The company usually sets a guaranteed rate of interest.
All interest income is subject to taxes. The policy owner can choose to let the dividends stay with the company for the duration of the policy and get the accumulated dividends at the end of the policy. He can also choose to withdraw all or a portion of the dividends at any point. In the event that the insured person dies, the beneficiaries can also opt to reinvest the insurance proceeds and accumulated dividends to earn interest.
This is also called Accumulation at Interest Option.
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- Domestic Insurance Company
- Double Indemnity Benefit
- Dread Disease Coverage
- Early Warning System
- Earned Premium
- Earthquake Insurance
- Economic Loss
- Electronic Commerce / E-Commerce
- Elimination Period
- Employee Dishonesty Coverage
- Dividend
- Disability
- Disability Income Insurance
- Directors and Officers Liability Insurance
- Direct Writers
- Direct Sales/ Direct Response
- Direct Premiums
- Diminution of Value
- Difference in Conditions
- Derivatives