Which benefit option allows for the accumulation of interest on dividends?

The correct answer is the option that refers to the accumulation of dividends at interest. This benefit option specifically allows policyholders to have their dividends, which are essentially a return of excess premiums paid on participating life insurance policies, accumulate over time while earning interest.

When dividends are accumulated at interest, they become part of a growing fund that can be accessed in the future, either as an additional source of funds or to enhance the policy's cash value. This method provides policyholders the opportunity to benefit from compounded earnings on the dividends, making it financially advantageous over merely taking the dividends as cash or utilizing them in other ways, such as reducing premium payments or purchasing paid-up additions.

The other options involve different ways to utilize dividends, but they do not inherently create an accumulating interest benefit on the dividends themselves. Therefore, understanding the accumulation at interest option is critical for those looking to maximize the financial benefits of their life insurance policy by allowing their dividends to grow.