Final answer:
The lady can use saved dividend checks for premiums thanks to her disciplined savings strategy, which was enhanced by the effects of compound interest.
Step-by-step explanation:
The capability of a lady to use her dividend checks to pay for premiums is enabled by the savings and investment strategy she employed by keeping her dividend checks over time. Dividends are a portion of a company's profits that are paid to shareholders, typically every quarter.
By choosing to save these payments instead of spending them immediately, she has built a reserve fund. The concept of compound interest plays a significant role here; it allows the dividends to grow when they are reinvested, thanks to the dividends earning interest on both the initial principal and accumulated interest from previous periods.