Which dividend option leaves dividends with the insurer to earn interest?

The option that allows dividends to remain with the insurer to earn interest is known as "Accumulate at Interest." When a policyholder opts for this option, the insurer retains the dividends and invests them, subsequently paying interest on the accumulated amount. This approach can benefit the policyholder since the policyholder can grow their dividends over time, as they earn interest.

In this case, the retained dividends can compound, potentially leading to a larger sum than if the policyholder had taken the dividends as cash upfront. This option is particularly appealing to those who do not immediately need the cash benefit and prefer to enhance their policy’s value through interest accumulation.

The other options serve different purposes. For instance, "One-Year Term" utilizes the dividends to purchase a one-year term insurance policy, providing temporary additional coverage rather than allowing dividends to grow. "Paid-Up Additions" uses dividends to purchase small additional amounts of paid-up insurance, which also does not involve leaving funds with the insurer for interest. Lastly, "Cash" provides the dividends directly to the policyholder, eliminating any opportunity for earning interest on the accumulated amount.