The policyowner pays for her life insurance annually. until now, she has collected a nontaxable dividend check each year. she has decided that she would rather use the dividends to pay for her next premium. what option would allow her to do this?

Reduction of premium

Explanation:

According to my research on different insurance policies, I can say that based on the information provided within the question the option that would allow her to do this is a Reduction of premium. This is because this allows the policyholder to apply policy dividends toward the next year's premium. Therefore making it easier for the policy-owner to pay for her next premium.

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