Veronica is a life insurance agent and she meets with a prospective client, Jason. After the necessary due diligence, Veronica recommends that Jason purchase a participating whole life policy, citing the potential benefits of policy dividends. When Jason asks Veronica about the dividend payment options, which of the following is the CORRECT response that Veronica should provide to Jason?

a)Instead of receiving the dividends, Jason can apply the dividends towards his premiums, thereby reducing his premiums accordingly.

b)The dividends can be invested in a separate accumulation account and both the dividends and the growth will be non-taxable and can be withdrawn at any time.

c)Jason can increase the amount of insurance by using the dividends to buy paid up additions provided that he has medical evidence of insurability.

d)Jason can elect to receive the dividends, which are taxed more favourably than ordinary income, and spend or invest the money however he chooses.