HomeLife InsuranceWhat is the difference between participating and non-participating life insurance?
Life Insurance Basics
What is the difference between participating and non-participating life insurance?
A participating life insurance policy is eligible to receive dividends from the insurance company. Non-participating policies do not pay dividends. Participating policies are typically issued by mutual insurance companies. Non-participating policies are typically issued by stock insurance companies.
Key Points
- Participating policy: eligible to receive dividends
- Non-participating policy: does not pay dividends
- Participating policies: typically issued by mutual insurance companies
- Non-participating policies: typically issued by stock insurance companies
- An independent agent can help you compare participating vs. non-participating policies