Which of the following would be classified as a cash option in dividend choices?

In the context of life insurance dividends, a cash option refers specifically to the method by which policyholders can receive dividends in the form of actual cash payments. When a policyholder selects a direct cash payment option, they are opting to receive their dividends in immediate, tangible money rather than having it applied towards other options like paying premiums or purchasing additional insurance. This choice provides the policyholder with liquidity, allowing them to use the cash as they see fit.

In contrast, the other options involve different mechanisms for utilizing dividends. Reduced paid-up insurance converts the dividend into a smaller form of permanent insurance rather than cash. Accumulated dividends with interest means the dividends are saved within the policy and earn interest over time, instead of being disbursed as cash. The one-year term option allows a policyholder to use dividends to purchase a term insurance policy for one year, which also does not provide immediate cash. Each of these alternatives has its own purpose and function within the policyholder's financial strategy, but none directly gives cash in hand like the direct cash payment choice does.