A policyowner wants to use her life insurance dividends to help pay for her next premium. What option allows her to do this?

The option that allows the policyowner to use her life insurance dividends to help pay for her next premium is the reduction of premium. This option specifically allows policyholders to apply their dividends directly toward the payment of their premiums, thereby reducing the out-of-pocket cost they need to cover.

By choosing to apply dividends in this way, the policyowner can effectively use the insurance company's earnings on the policy to lower her financial responsibility for premiums while keeping the policy active. This can be especially beneficial as it allows for more efficient cash flow management.

The other options do not facilitate this specific use of dividends. For instance, paid-up additions allow policyholders to purchase additional life insurance coverage, accumulation at interest refers to earning interest on dividends that are kept in the policy rather than withdrawn, and the cash option would involve taking the dividends as a cash payout rather than applying them to premium payments. Therefore, using dividends to reduce premium payments is efficiently addressed by the reduction of premium option.