What Is Non-Participating Term Life Insurance?

Comments

2 responses to “What Is Non-Participating Term Life Insurance?”

1. 

   October 5, 2014

   Jim Winkler

   That is a great question! Life insurance policies are designated “participating”, or “non-participating”. The terms refer to the payments of dividends from the insurance company to you, to be applied to your policy. In a non-participating policy, there is no dividend payment arrangement. In a participating policy, you may or may not receive a dividend payment, it is solely up to the discretion of the company as to whether it pays one or not, and if so, how large that payment is. I hope that helps, thank you for asking!
2. 

   September 27, 2014

   Peggy Mace

   Non-participating term life insurance is term life insurance that simply pays out the original death benefit if you die while the policy is in effect. It will not pay dividends while you are still alive, and the death benefit will not increase by virtue of the company sharing their profits with you. I don’t know of any term policies that are participating.