Sentences with phrase «dividends during the life of the policy»

Not exact matches

A whole life insurance policy has both a death benefit and a cash value component, with the cash value portion being further broken down into two separate elements — one where the cash value grows on a pre-determined basis during the life of the policy and another non-guaranteed element that is made up of policy dividends or excess interest.

Although not guaranteed, most of these participating whole life policies, backed by mutual insurance companies, have paid dividends for 150 years or more, even during the great depression and great recessions.

Non-participating contracts typically do not pay dividends and the death benefit, premiums, and surrender values will not change during the life of the policy.

Dividend payments are typically large enough that whole life owners actually can expect to have a positive rate of return on their life insurance during the life of the owner, meaning after a certain amount of time the cash value of the policy will be larger than the amount of money paid in.

During times of rising interest rates a universal life insurance policy may also increase rates faster than a whole life policies increase dividends.

This growth is dependent upon premiums being paid, as well as your eligibility to earn dividends, and grows slowly during the life of the policy.