You want to purchase a life insurance policy that pays a dividend.What kind of policy would you want to purchase?

Question

Quizplus · Accepted Answer

A participating policy is a type of life insurance policy that pays dividends to policyholders based on the company's financial performance. The dividends can be used to reduce premiums or increase the policy's cash value. A nonparticipating policy does not pay dividends, while a mutual policy is a type of participating policy offered by mutual insurance companies. A stock policy is a type of insurance policy offered by stock insurance companies, which are owned by shareholders and do not pay dividends to policyholders. A dividend policy is not a specific type of life insurance policy. Therefore, the best choice would be a participating policy.

You Want to Purchase a Life Insurance Policy That Pays