Which Type Of Life Insurance Policy Pays A Dividend?

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   Ted Ratliff

   Owner, SFS Associates,

   Dividends are paid by Mutual Companies.  There are three main types of Life insurance companies:  Stock companies, who pay profits to stockholders, Fraternal's, who give back profits in the form of extra benefits to their policy holders, and Mutual companies.  Mutual companies pay back excess profits in the form of dividends to their policy holders.  Look for the word "Mutual" in the company name, as one indicator.  Dividends are usually only paid on whole life policies.

   Answered on May 7, 2013

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