It is a policy feature of permanent life insurance that permits policyholders to left any dividends obtained with the insurer, where the dividends can gain interest. Accumulation options are the variety of options holders of participating life insurance policies can create with the dividends they get. Some types of insurance give dividends to their policyholders every year when the insurance company does better than expected. It is also known as an "accumulation option," "dividends on accumulation" or "accumulation at interest option".

Common options offered to participating permanent life insurance policyholders are to use their dividends to buy more insurance, or to pay a part of their existing premiums. They can also choose to receive their dividends instantly as cash, or to leave them on deposit with the insurance company to gain interest.

Posted Date: 7/27/2012 8:03:44 AM | Location : United States

Ask an Expert

Related Discussions:- Accumulation option, Assignment Help, Ask Question on Accumulation option, Get Answer, Expert's Help, Accumulation option Discussions

Write discussion on Accumulation option
Your posts are moderated

Write your message here..

Related Questions

Objectives of financial services authority, Objectives of financial service... Objectives of financial services authority FSMA provides four statutory objectives to FSA. They are: Market Confidence: Maintaining confidence in the financial system;

Valuation methods, Valuation Methods: 2 - Year Method Perpetual ... Valuation Methods: 2 - Year Method Perpetual Growth Method Constant Growth Method Zero Growth Method Growth Phases Valuation Model:  'Constant Growth Met

Auction technique, Auction Technique Auction is the most common method ... Auction Technique Auction is the most common method to sell Government Securities. Other methods include tap sales, syndication and book building process. Presently many countr

What is lending system, Q. What is Lending System? Under the note lendi... Q. What is Lending System? Under the note lending system, the borrower takes a loan, usually of 90 days Duration, against a promissory note. The loan may be renewed or retired

Examine the examples of political risk within countries, Examine the Exampl... Examine the Examples of political risk within countries Outbreak of national war, unrest, civil war or riot. Nationalisation of industriesfor example confiscation of as

Marketing, How to use integrated promotional mix to achieve marketing objec... How to use integrated promotional mix to achieve marketing objectives

Balance sheet, Balance Sheet: The balance sheet measures the financial ... Balance Sheet: The balance sheet measures the financial position of the business at a particular point in time.  It is also called Statement of Financial Position. The balan

Managing risk and contingency plan, Managing Risk and Contingency Plan: ... Managing Risk and Contingency Plan: An essential component of any financial management framework is the validation and protection of the information contained in the system. In

Explain conversion and competitive effects of exchange rate, Define the con... Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer:  The competitive effect: Exchange rate modifications may in

Interest rates over the business cycle, Interest rates are the key de... Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes