Which of the listed options is NOT a valid policy dividend option for a life insurance policyowner?

The option that is NOT a valid policy dividend option for a life insurance policyowner is indeed accumulation without interest. In the context of policy dividends, a life insurance company typically offers several options for policyholders to use their dividends, which include:

1. Paid in cash: This gives the policyholder the immediate benefit of receiving the dividend as cash.

2. Reduce premium payments: Policyholders can choose to apply their dividends toward reducing future premium payments, making insurance more affordable over time.

3. Purchase paid-up additions: This allows policyholders to use dividends to acquire additional coverage that does not require further premium payments, effectively increasing the death benefit and the cash value of the policy.

The concept of "accumulate without interest" is not typically recognized as a valid dividend option because accumulated dividends usually at least allow for some interest accumulation, albeit at a lower rate than traditional savings accounts. Therefore, dividends are not simply left to accumulate without any interest as this would not align with standard practices in the life insurance industry.

This understanding of valid dividend options is crucial for life insurance policyholders to maximize the benefits of their policies.