Life insurance dividend options?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Some life insurance companies, organized in a mutual structure (rather than a stock structure) declare and issue dividends. By way of background, mutual insurers are owned by their policyholders, whereas stock insurers are owned by their shareholders. One does not need to be an insured to own the stock of a stock insurer, but by definition, one does need to be an insured of a mutual insurer to own a "piece" of it.

When the directors of a mutual company deem it financially appropriate to do so, they may declaure a dividend. It will be payable to persons who owned policies as of a date certain.

\When application for the policy is made, the prospective insured is given the choice of accepting future declared dividends in cash, by reduction in future premium(s), or by means of additional paid-up insurance. Depending upon the insurer all, some, or different of these options may be available. The applicant for insurance will initially a dividend option, but it can usually be changed later.

Some mutual insurers offer other than life insurance. The word "Mutual" will appear in the formal name of the company or will be otherwise prominently designated.

What is term life insurance with the option to convert?

Answer . This is term life insurance with the option to convert the policy to whole life insurance without providing evidence of insurability. This exchange involves the is

What options do you have when you choose life insurance?

There are two primary forms of life insurance, and within each, several variants. Term life insurance is what the name suggests-coverage for a stated period of time--often

What can generally not be a source of life insurance policy dividends?

Dividends are paid only by mutual insurance companies, not by stockinsurance companies. All insurance companies are required by thestate regulatory authorities where they do b

What type of life insurance companie pay dividends?

Rip-off companies. If they pay dividends, it means they are returning excess premiums you paid. So they charge you bunch of money at first and invest it for themselves. Then r

Can debt collectors garnish life insurance dividends?

As with most financial topics, the answer is, "It depends." This is subject to state law; therefore, the answer will vary by state. In my state, the cash value of life insur

What describes dividends paid on life insurance policies?

A dividend represents a distribution of earnings made by a mutual life insurance company to its policyholders. From the standpoint of corporate structure, a mutual company is

What is a renewal option on life insurance policy?

By paying your renewal premia, your life insurance is automaticallyrenewed. When a policy lapses due to non payment of premia, thereis provision for renewal of policy by payin

What is a life insurance policy dividend?

It's a payment made to the policy owner by the mutual insurancecompany when there is a profit. The policyholders are the owners ofa mutual life insurance company and they shar