Participating Whole Life Insurance

The term “participating whole life insurance” denotes a category of whole life insurance (mixed life insurance) policies which yield dividends. Dividends are distributed to policyholders when low claim rates, high profit rates or a combination of both create a surplus.

Dividends may build the cash value of a policy, be paid out to policyholders in cash, or passed on to policyholders in the way of discounts on premiums.

Participating whole life insurance is a broad category which includes many different types of whole life insurance. The common factor is the payment of dividends.

See also: Non-participating whole life insurance

More on this topic:
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