A(n) _____ is a life insurance policy that pays policy dividends reflecting the difference between the premiums that are charged and the amount of premium necessary to fund the actual mortality experience of the company.

Question

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A participating policy is a life insurance policy that pays policy dividends reflecting the difference between the premiums that are charged and the amount of premium necessary to fund the actual mortality experience of the company. These policies are also sometimes referred to as "par policies" or "with-profit policies." The dividends can be used to purchase additional coverage, reduce premiums, or be taken as cash.

A(n) _____ Is a Life Insurance Policy That Pays Policy