Accumulation Option

Although permanent insurance policy owners do not have an option whether they die or live forever, owners of permanent or whole life insurance policies do have the option of what to do with their dividends. It’s cleverly called the accumulation option.

When things go well, your permanent insurance policy earns dividends. With the accumulation option, you can choose to invest these dividends back into the policy where they earn interest. Accumulated dividends become part of the policy’s payoff value when you die. Or even better, they become part of the policy’s accumulated cash value, if you live.