Which dividend option is advisable for a policyholder seeking substantial coverage immediately?

The term insurance dividend option is particularly suitable for a policyholder looking for substantial coverage immediately. This option allows the policyholder to use their dividends to purchase a term insurance policy, thereby increasing their overall life insurance coverage without the need for additional premium payments. This immediate increase in coverage can be especially beneficial if the policyholder has increasing needs or responsibilities, such as family changes or financial obligations.

In contrast, the other options do not provide immediate substantial coverage. Paid-up additions typically enhance the existing policy's cash value and death benefit over time but do not specifically offer immediate additional coverage. The accumulation option allows dividends to be invested, potentially growing over the long term, but does not provide any immediate benefit in terms of increased coverage. Choosing cash simply gives the policyholder a payout but does not influence their insurance coverage at all.

Therefore, for someone seeking to increase their coverage immediately using dividend payments, the term insurance dividend option stands out as the most effective choice.