Is this a participating policy?
Use this as a checkpoint before comparing carriers or signing an application.
Insurance terms
Whole life dividends
Non-guaranteed payments some participating whole life policies may receive.
Definition
Whole life dividends
Whole life dividends may be paid on participating policies when the insurer has favorable results. They are not guaranteed and should be separated from guaranteed values in any illustration.
- Why it mattersDividend language can make whole life feel more certain than it is. The contract guarantees matter first. Dividends can add value, but they should not be treated as a promise.
- What it is notThis is not a quote, approval, recommendation, or policy promise. The exact meaning depends on the contract and carrier.
- Where to confirm itAsk to see the policy language, rider language, illustration, or contract page that controls this term.
Questions to ask.
A good broker conversation should turn a definition into a practical policy decision.
Which values are guaranteed?
Use this as a checkpoint before comparing carriers or signing an application.
How are dividends illustrated?
Use this as a checkpoint before comparing carriers or signing an application.
What are the dividend options?
Use this as a checkpoint before comparing carriers or signing an application.
Related reading.
Keep the explanation connected to the product you are comparing.