A cash payment made yearly to owners of cash value life insurance policies is known as an annual dividend in the insurance industry. A cash payment made yearly to owners of cash value life insurance policies is also known as an annual dividend in the insurance industry. Cash value life insurance policies are typically issued by a life insurer who has made a capital investment and expects to receive periodic payments from policyholders.
The amount of the dividend will vary from policy to policy, depending on how well the health of the insured person has performed since their last policy renewal date (also known as "vesting"). Annual dividends can be paid with the death of the insured or at any time during their policy term. They are usually paid in addition to other benefits and may be subject to a surrender charge that must be paid before receiving the annual dividend.
The amount of the dividend will vary from policy to policy, depending on how well the health of the insured person has performed since their last policy renewal date (also known as "vesting"). Annual dividends can be paid with the death of the insured or at any time during their policy term. They are usually paid in addition to other benefits and may be subject to a surrender charge that must be paid before receiving the annual dividend.
