Final answer:
All the mentioned policy dividend options are valid for a life insurance policyowner except for reduction in policy premium.
Step-by-step explanation:
All of the mentioned policy dividend options are valid for a life insurance policyowner, except for option C) reduction in policy premium. Policy dividends refer to the payment made to the policyowner by the insurance company when the policy generates excess profits. These dividends can be received in the form of cash outlay to the policyowner, accumulation without interest, or used to buy additional insurance coverage. However, a reduction in policy premium is not a valid policy dividend option as it involves lowering the amount the policyowner pays for the insurance policy.