Which option refers to utilizing policy dividends to reduce future premiums?

The option that refers to utilizing policy dividends to reduce future premiums is best represented by the concept of "Reduction of premium." When policyholders receive dividends from their insurance policies, they often have several choices regarding how to use those dividends. Choosing to apply dividends as a reduction of premium allows the policyholder to directly decrease the amount they need to pay for future premiums, effectively reducing the overall cost of maintaining the policy.

This is a common and practical option for policyholders who want to lessen their financial obligations while still keeping their coverage intact. It can lead to significant savings over time, making it an attractive option for those who receive dividends.

Other options available when it comes to managing dividends also have distinct purposes. For example, "Accumulated at interest" refers to dividends being left to accumulate with interest rather than being used immediately. "Paid-up additions" refers to using dividends to purchase additional coverage that requires no further premiums, while "Cash payout" involves taking the dividends as a cash distribution rather than applying them to the policy. However, none of these options specifically address the reduction of future premiums as directly as the selected answer does.