If a policyholder chooses a cash option for dividends, what do they receive?

When a policyholder opts for a cash option for dividends, they receive a cash payout. This means that rather than reinvesting the dividends back into the policy or using them for other purposes, the policyholder is given the amount in cash. This option is beneficial for those who may need immediate funds or prefer to use the dividends for personal expenses.

The cash payout allows policyholders to realize the value of their dividends immediately, which can be a practical choice for individuals seeking liquidity from their insurance policy. This is distinct from other options, such as reduced premium payments or increased death benefits, which do not provide immediate cash but rather adjust the policy's future financial dynamics. Overall, selecting a cash payout option is a straightforward and beneficial choice for policyholders looking for direct financial benefits from their policy dividends.