Life Insurance
Participating Whole Life Insurance
Participating whole life is a type of whole life insurance where policyholders may receive dividends based on the performance of the insurer's participating account.
How it works
Like other whole life policies, participating coverage is designed to last your lifetime with guaranteed premiums, a guaranteed death benefit, and guaranteed cash value.
On top of those guarantees, the policy may pay dividends. Dividends are not guaranteed and depend on the insurer's results.
Dividends can often be used in different ways — for example to buy additional coverage, reduce premiums, or be paid out. The options vary by policy.
Things to consider
Dividends aren't guaranteed
Illustrations show possible outcomes, not promises. Review both guaranteed and non-guaranteed values.
Dividend options
How you use dividends changes how the policy grows. Choose deliberately.
Time horizon
These policies are built for the long term and usually make the most sense held for many years.
Tax treatment
Tax treatment can be complex. Review your situation with an advisor and your accountant.
Frequently Asked Questions
Are dividends guaranteed?
No. Dividends depend on the insurer's participating account results and can change over time.
How is it different from regular whole life?
Non-participating whole life has guaranteed values only. Participating whole life adds the possibility of dividends.
Other types of life insurance
Term Life Insurance
Coverage for a set period, usually at the lowest cost.
Whole Life Insurance
Lifelong coverage with fixed premiums and guaranteed cash value.
Universal Life Insurance
Permanent coverage with flexible premiums and an investment component.
No-Medical & Guaranteed Issue Life Insurance
Simplified coverage without a medical exam.
Mortgage Life Insurance
Coverage built around paying off your home.
Joint Life Insurance
One policy covering two people.
This page provides general educational information only and is not personal financial advice. Coverage availability and terms depend on the insurer and your individual circumstances.
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