Whole Life Insurance
What is a life insurance dividend?
A life insurance dividend is a return of excess premium paid by a participating whole life insurance policy. Dividends are not guaranteed but have been paid consistently by some mutual insurance companies for over 100 years. Dividend options include: cash, premium reduction, paid-up additions, and accumulation at interest.
Key Points
- Dividend: return of excess premium from participating whole life policy
- Not guaranteed but consistently paid by some mutual companies
- Dividend options: cash, premium reduction, paid-up additions, accumulation at interest
- Paid-up additions: most common choice — increases death benefit and cash value
- An independent agent can help you understand dividend options