Which of the following is NOT a way dividends can be paid?

Dividends from a life insurance policy can be distributed to policyholders in several forms, including cash payments, paid-up additions, and accumulation of interest. When a policyholder receives cash payments, they obtain the actual dividend amount directly. Paid-up additions involve using the dividends to purchase additional coverage, which enhances the overall value of the policy. Accumulation of interest means that instead of taking the dividend payment immediately, the policyholder allows the dividends to accumulate within the policy, earning interest over time.

Policy loans, on the other hand, do not constitute a way dividends are paid out. Instead, a policy loan is an option available to policyholders where they can borrow against the cash value of their policy. This loan is separate from the dividend payment process. While dividends could provide sufficient cash value to secure a policy loan, borrowing is not a method of receiving dividends; hence, it is the correct choice as the option that does not represent a way dividends are paid.