Which option allows a policyowner to use dividends to help pay for premiums?

The choice allowing a policyowner to use dividends to help pay for premiums is the reduction of premium option. This option permits policyholders to apply their earned dividends directly towards the payment of their policy premiums. By choosing this method, the policyowner can reduce the amount required out of pocket for their premium payments, making it a practical way to manage insurance costs.

The other options serve different purposes: for instance, the cash payout option involves receiving dividends as cash rather than using them toward premiums, while paid-up additions refer to purchasing additional insurance coverage with dividends instead of applying them to premiums. Lastly, accumulating at interest involves leaving the dividends with the insurer to earn interest over time, which does not directly benefit the owner when it comes to premium payments.