Are whole life insurance policies eligible for dividends?

Whole life insurance policies can be eligible for dividends. If you buy a whole life insurance policy, find out whether it’s “participating” or “non-participating.” Only participating policies can get dividends. A participating policy charges a higher premium and, in return, pays regular dividends to the policy owner.

Do life insurance policies pay dividends?

Policy dividends can be paid by check, applied to your future premiums, or used to buy additional coverage. Whether or not your whole life insurance policy pays dividends depends on your insurer. Dividends are annual payments some insurers send to permanent life insurance policyholders.

Are dividends guaranteed when buying a participating life insurance policy?

However, dividends aren’t guaranteed when purchasing a participating life insurance policy. Participating life insurance policies are typically whole life insurance contracts. Whole life insurance is a type of permanent life insurance, meaning the coverage lasts your entire life.