Dividends for your Whole Life policies are paid out annually on your policy anniversary.
These dividends are noted on your annual statement.
We issue every policy having that dividend reinvested into your policy.
How do they reinvest it? They use it to purchase paid-up additions.
When a dividend or a paid-up addition is paid into your policy, it then becomes guaranteed.
They can’t take it back out. It’s not like your old 401K statements where it’s up and down and up and down. The only way that that cash can come out of your life insurance cash value is if you take it out, or you stop making your payments and you go on an APL, an automatic premium loan, or when you pass away.
Neither the market conditions nor the economy, can or will change what is already in your policy!
The only way that that cash value can change is if you make a change to it.
Anytime a premium is paid and it credits to your cash value, whether it’s interest, dividends, paid-up additions, or base premium, it’s guaranteed!
If you want to know how the dividend is being used, call our office and we will review your dividends with you.
Term policies are not paid dividends.