If dividends are paid, you usually choose how they’re used: buying paid-up additions, leaving them on deposit to earn interest, reducing your premium, or taking them in cash. The options available depend on the insurer and the policy. Once a dividend is credited to your policy, it’s yours, even if the dividend scale goes down later.
What happens to my participating life insurance dividends if I don’t use them?
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
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