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Dividend The dividend on a life insurance policy is a return given to the policy holder of part of the premium. If the life insurance company invests the premiums successfully, they will sometimes pay a divided to the insured individual. This dividend can be added to the value of the policy, or paid directly to the insured. Dividends are not guaranteed, and are only given when included in the terms of the life insurance policy. Even when dividends are worked into the policy, they are not guaranteed, since they are reliant upon successful investment of the policy premiums. Getting a policy that pays dividends on your life insurance is a great way to earn some income on your policy while investing against the possibility of your death. When shopping for life insurance policies, strongly consider finding a policy that pays dividends. Dividends can make your policy more valuable in the long run. More Glossary Terms Explained here |
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