Dividends reflect how the insurer’s participating fund performs compared with what it assumed when it priced the policies. The biggest factor is investment returns, but claims, lapses, expenses and taxes also play a part. The insurer smooths results over many years, so dividends tend to change gradually. They aren’t guaranteed, and the details vary by insurer and policy.
How are dividends from participating life insurance determined?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about participating life insurance
Permanent life insurance that can earn dividends, which you can use to add coverage, build cash value or lower your premiums.
More questions about participating life insurance
- What is participating life insurance?
- Can I access the cash value in my participating life insurance policy?
- What happens to my participating life insurance dividends if I don’t use them?
- Is participating life insurance a good investment?
- How do universal life insurance and participating life insurance differ?
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