Whole Life Insurance Dividend. Today’s dividend rate on the illustration means guaranteed dividend rates in future years. Policies that pay whole life dividends are also known as “participating life insurance,” or a “participating policy contract.”.
Dividends are paid annually, and policy owners have a choice of how to use their dividend payment. The dividend payment is a way for whole life policy owners to take part in the money an insurance company makes in profit. Many whole life insurance policies provide dividends representing a portion of the insurance company’s profits that are paid to policyholders.
Term vs Permanent Life insurance Educational infographic
Some companies offer dividend paying whole life insurance policies which means the policies pay dividends. Mutual insurance companies are companies owned by the policyholders. The original four options policyholders have for a whole life dividend are: These four whole life insurance dividend options did not originate at the exact same time, but their existence as options spans an extremely long time.
