What happens to dividends under the accumulate at interest option?

Under the accumulate at interest option for dividends, the dividends that a policyholder receives are not simply cashed out or lost; instead, they are reinvested to earn interest. This means that rather than having to use the dividends immediately or let them go unused, policyholders benefit from the power of compounding interest over time. The amount accumulates, making it a beneficial choice for those looking to enhance their investment and potentially withdraw the funds at a later date.

This option offers flexibility, as policyholders can choose to withdraw the accumulated dividends plus any interest earned instead of sticking to immediate uses like premium payments or other options. By selecting this choice, the policyholder not only maintains control over their dividends but also takes advantage of the interest generation, ultimately increasing the value of their insurance benefits.