Not exact matches
Depending on the kind
of whole policy you buy, the cash portion earns interest from the life
insurance company's investments, or at a predetermined rate set by the
company, or in some cases from dividends
of the
company's
annual profit.
A mutual life
insurance company will offer
annual dividends as a share
of the
company's net
profit (after claims, expenses and investment gains are figured out).
Some whole life plans also offer policyholders a dividend — an
annual payout that comes out
of the
insurance company's
profits.
In a participating policy (also «par» in the United States, and known as a «with -
profits policy» in the Commonwealth), the
insurance company shares the excess
profits (divisible surplus) with the policyholder in the form
of annual dividends.
A mutual life
insurance company will offer
annual dividends as a share
of the
company's net
profit (after claims, expenses and investment gains are figured out).
Dividends are generated from the
profits of the
insurance company that sold the policy and are typically paid out on an
annual basis over the life
of the policy.