What type of life insurance policy pays dividends whole life or equity or partcipating or nonforfeitable?
Question ？ What type of life insurance pays dividends?
Answer ？ Dividends are paid by participating life insurance
policies. The word "participating" suggests that the owner of the
policy would get a dividend on the policy if the company earns one.
A life insurance company cannot guarantee a dividend as this
depends on the performance of the company. Investment performance
as well as operating costs come into play.
Whole life policies are participating policies.
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Question ？ What are "equity" linked policies?
Answer ？ Equity linked policies are life insurance policies
that, to put it simply, are hooked up with an investment
portfolio...like mutual funds for example. Examples are variable
universal life insurance policies and variable life insurance
policies. These policies are sold only by "prospectus". The agent
must have an NASD license to sell these policies. This license is
different from his regular life insurance license.
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Question ？ What are nonforfeiture values?
Answer ？ If at any time in the future a policy owner wishes to
terminate premium payment of a participating life insurance policy
policy there are certain option made available by the life
insurance company. S/he may surrender the policy for its cash
value, extended term life insurance may be purchased with the cash
values or the cash values may be applied to purchase a reduced paid
up policy.
Details:
Related Q&A：
How do you apply your organisations values and policies？Well, let me tell ya. First off, I make sure I really understand those values and policies inside and out. I keep them in mind in every decision I make. Like, if there's a choice to be made, I stop and think, \Hey, does this align with our organization's values?\ I also communicate with my team members about them. We have discussions and make sure we're all on the same page. It's not always easy, but I do my best, you know? And if there's any confusion, I don't hesitate to go to the higher？ups and get clarification.
