life insurance dividends

What are Life Insurance Dividends?

A “dividend” on a life insurance policy is unlike the dividend you receive on a share of stock or a stock mutual fund. For tax purposes, dividends are considered a return of a portion of the premiums paid for the policy. They are recommended for only permanent policies rather than term policies.

life insurance performance

How To Determine the Performance of a Life Insurance Policy

When determining the performance of a life insurance policy, there are four components, which are directly related to the actual premium you pay, to take into consideration. The premium you pay on your life insurance policy may fluctuate from year-to-year if any of these components change; they are mortality, administrative expense, interest rates and persistency.