answersLogoWhite

0


Best Answer

Annual dividends (which are not guaranteed) are used to pay life insurance premiums rather than add to cash value or be received in the form of a check. It is a good idea if you wish to reduce or even eliminate out of pocket payments!

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is premium reduction dividend option?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Can share premium be use to distribute as dividend?

no ,securities premium not used as a dividend


What is the symbol for John Hancock Premium Dividend Fund in the NYSE?

The symbol for John Hancock Premium Dividend Fund in the NYSE is: PDT.


Why option premium changes daily and how in index and stock options?

The option premium changes based on the change of stock price, days to expiration, change in implied volatility and dividend price. Options Weekly has a nice tutorial on options, see related links.


What is the market cap for John Hancock Premium Dividend Fund PDT?

As of July 2014, the market cap for John Hancock Premium Dividend Fund (PDT) is $676,614,369.09.


What is the symbol for Voya Global Equity Dividend and Premium Opportunity Fund in the NYSE?

The symbol for Voya Global Equity Dividend and Premium Opportunity Fund in the NYSE is: IGD.


In what year did Voya Global Equity Dividend and Premium Opportunity Fund - IGD - have its IPO?

Voya Global Equity Dividend and Premium Opportunity Fund (IGD)had its IPO in 2005.


What is bonus in reduction of premium?

it is in practice of the insurance companies ,if a policy is renewed with same company , it grants a reduction in premium at the prescribed rate if the insured has not made any claim during the previous year . such reduction of premium in bonus


Is dividend paid an expense in income statement?

No a dividend is not an expense. It is generally a reduction of retained earnings in the equity section of the balance sheet.


What is the market cap for Voya Global Equity Dividend and Premium Opportunity Fund IGD?

As of July 2014, the market cap for Voya Global Equity Dividend and Premium Opportunity Fund (IGD) is $953,052,997.25.


What is the journal entry for declared dividends?

No journal entry for stock option until that stock option is not utilized by the employees or any person with stock option available to them.


Is the seller of the option retains the option premium whether or not the option is expired?

Yes, as soon as the option is sold on the open market to a buyer, the seller immediately receives and retains the option's premium. This premium is kept regardless of the action of the market or the buyer. In the event the option expires worthless, the premium becomes profit for the seller, or in contrast, the premium can be used to help offset loss if the seller decides to close the position and buy back the option. It is important to note, however, that the premium received remains in escrow and cannot be used in any capacity until the risk taken on by the trade is eliminated in due course by either the expiration of the option, or the buy back of the position.


What is a synonym for the word bonus?

extra, prize, gift, reward, premium, dividend, advantage, gain, asset, icing on the cake