Which of the following is a dividend option in a participating whole life policy?

In a participating whole life policy, policyholders have the opportunity to receive dividends, which are a share of the insurer's profits. These dividends can be utilized in several ways, known as dividend options.

The option of cash payment allows policyholders to receive their dividends as cash. This is a straightforward way for policyholders to access the financial benefits of their policy.

Paid-up additions enable policyholders to use their dividends to purchase additional coverage without the need for further premiums. This option effectively increases the death benefit and cash value of the policy over time, compounding the benefits received from the policy.

Premium reduction allows dividends to be applied towards future premium payments. This can decrease the financial burden on policyholders while still maintaining their coverage.

Given that a participating whole life policy offers a variety of choices for utilizing dividends, including cash payment, paid-up additions, and premium reduction, the correct answer encompasses all these options. Each choice presents a unique way for policyholders to benefit from their dividends, demonstrating the flexibility and adaptability provided by participating whole life insurance policies.