Life Insurance Dividend

A life insurance dividend is money distributed to life insurance policyholders when the profits of the issuing insurance company exceed a certain threshold. Dividends are typically paid out by mutual life insurance providers.

In most cases, dividends are only paid out to holders of whole life insurance policies, such as the mixed life insurance and savings life insurance policies offered by Swiss life insurance providers. Dividends may be cashed out or added to equity in a life insurance policy in order to build its cash value.

More on this topic:
Term life insurance comparison
Life insurance: Useful tips
Term Life Insurance vs. Mixed Life Insurance

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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