Definition of Accumulation Option

Definition :

it is defined by a policy of a permanent life insurance. under this policy, policyholder permits to leave any premium received with the insurer, where the dividends can also earn interest. it also called “accumulation at interest option” or “dividends on accumulation”.

Explanation :

Accumulation options includes the variety of option holders which are participating in life insurance policies can make with the profits they receive .Some insurance companies pay extra dividends as a reward to their policyholders when the insurance company perform better than the estimated. Policyholders can also appointed to receive their share of profit instantly as a cash or the second option is to leave their profit on deposit with a insurance company to earn interest on it .

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