An accumulation option is also known as an "accumulation at interest dividend option," "accumulation at interest option," or "dividends on accumulation." An accumulation option reinvests dividends back into the policy to earn interest on an annual basis. Death benefits may also increase due to increases in cash value.
What is a compound interest calculator?
This Compound Interest Calculator can help determine the compound interest accumulation and final balances on both fixed principal amounts and additional periodic contributions. There are also optional factors available for consideration, such as the tax on interest income and inflation.
What is an accumulation option in life insurance?
An accumulation option is a policy feature of permanent life insurance that reinvests dividends back into the policy, where it can earn interest. Some types of insurance pay dividends to their policyholders each year when the insurance company performs better than estimated.
