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	<title>New answer on: What Is A Life Insurance Policy Dividend?</title>

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		<title>By: David Racich</title>

		<link>https://insurancelibrary.com/life-insurance/what-is-a-life-insurance-policy-dividend</link>

		<dc:creator>David Racich</dc:creator>

		<pubDate>Wed, 12 Jun 2013 16:35:07 +0000</pubDate>

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		<description><![CDATA[A participating whole life insurance policy has the potential to generate an annual dividend. It can also have the potential to generate a terminal dividend at the surrender of the policy. Dividends are not guaranteed. A dividend is the return of unused premium to the policy owner. Because dividends are considered return of unused premiums, they are not taxed up to basis. Dividends can be taken in cash and used in a verity of internal policy rider applications: term insurance paid up additional insurance, to reduce premiums, to pay premiums, etc.
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