Life insurance dividend options?

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Some life insurance companies, organized in a mutual structure (rather than a stock structure) declare and issue dividends. By way of background, mutual insurers are owned by their policyholders, whereas stock insurers are owned by their shareholders. One does not need to be an insured to own the stock of a stock insurer, but by definition, one does need to be an insured of a mutual insurer to own a "piece" of it.

When the directors of a mutual company deem it financially appropriate to do so, they may declaure a dividend. It will be payable to persons who owned policies as of a date certain.

\When application for the policy is made, the prospective insured is given the choice of accepting future declared dividends in cash, by reduction in future premium(s), or by means of additional paid-up insurance. Depending upon the insurer all, some, or different of these options may be available. The applicant for insurance will initially a dividend option, but it can usually be changed later.

Some mutual insurers offer other than life insurance. The word "Mutual" will appear in the formal name of the company or will be otherwise prominently designated.

What is term life insurance with the option to convert?

Answer . This is term life insurance with the option to convert the policy to whole life insurance without providing evidence of insurability. This exchange involves the issuance of a whole life policy at a premium rate.. Convertibility may require that you take a physical exam. Your new rates f (MORE)

Is providing insurance a call or a put option for the insurer?

When you buy an insurance on your asset, you are essentially buying a put option on your asset for protection much like the Protective Put options trading strategy. As such, to the insurer, they are actually selling a naked put option to the buyer of the insurance.

What type of life insurance policy pays dividends whole life or equity or partcipating or nonforfeitable?

Answer . Question - What type of life insurance pays dividends? Answer - Dividends are paid by participating life insurance policies. The word "participating" suggests that the owner of the policy would get a dividend on the policy if the company earns one. A life insurance company cannot gua (MORE)

What are Dividends that are used to purchase more fully paidup life insurance coverage?

Mutual insurance companies (companies owned by their policy holders) pay dividends. Some companies may allow you to elect to use the dividend to purchase a small amount (usually around 1-2K) of "paid-up" insurance instead of receiving a check. The paid-up insurance will never require another payment (MORE)

Is mortgage insurance optional?

no. If you have a loan greater than 80% of the value of the home and the lender requires mortgage insurance, then it is not optional.

What is the Guaranteed insurability option?

Guarenteed Insurability Option, often shortened to GIO, is usually added free to most term life insurance policies and means details of the cover can be altered without the need to reapply and prove your insurability.

What options do you have when you choose life insurance?

There are two primary forms of life insurance, and within each, several variants. Term life insurance is what the name suggests-coverage for a stated period of time--often 10, 15 or 20 years. It is "pure protection" in the sense that it pays a death benefit only and does not have annexed to it a (MORE)

What is premium reduction dividend option?

Annual dividends (which are not guaranteed) are used to pay life insurance premiums rather than add to cash value or be received in the form of a check. It is a good idea if you wish to reduce or even eliminate out of pocket payments!

Is dividend paying term life insurance by pamela yellen too good to be true?

Answer 1: Yes, it is too good to be true. Life Insurance is as important as your house. Please see a reputable and known company. State Farm, Prudential (the real one!) or All State. Answer 2: There is no such thing as dividend paying TERM life insurance. In her book, Bank On Yourself, Pamela (MORE)

What is a G P O option on a life insurance policy?

A GPO or guaranteed purchase option is a type of inflationprotection that lets you pay for an increase in your benefitamount. It one of the factor that also affects long-term careinsurance rate. It is usually offered by your insurance agent everytwo to three years and you can either accept it or for (MORE)

When you sell a call option who gets the dividend?

Dividends don't play into call options. If you sell a covered call and it expires worthless, you'll receive any dividends from the stock because you still own the stock. If it's exercised, the new owner receives them because the stock is hers now. The money that changes hands when you sell a call (MORE)

Which is the best dividend or growth option in mutual fund?

Each scheme has its own pro's and con's. If you want a regular income on your MF investments go for Dividend option. If you do not want to disturb your investment for a long time and allow it to grow go for the Growth option. Sample Returns Comparison - HDFC Prudence Dividend Plan & Growth Plan (MORE)

What can generally not be a source of life insurance policy dividends?

Dividends are paid only by mutual insurance companies, not by stockinsurance companies. All insurance companies are required by thestate regulatory authorities where they do business to maintainstatutory reserves to ensure that there is sufficient money on handto pay expected losses. Therefore, divi (MORE)

What type of life insurance companie pay dividends?

Rip-off companies. If they pay dividends, it means they are returning excess premiums you paid. So they charge you bunch of money at first and invest it for themselves. Then return the excess premiums back to you at the end of the year.

What are the best options for cheap car insurance?

Some of the best options of cheap car insurance can be obtained by making sure that there are no hidden fees or costs when buying the insurance. There is no such thing as really cheap car insurance, but Progressive is certainly worth taking a lot at.

Does Geico have options for auto insurance?

Geico does have many options for auto insurance. You can find them by visiting their website, or by calling their 800 number. They should have something to fit your auto insurance needs.

Is Aflac insurance a good option for insurance?

Aflac is a reputable company with over 50 million customers so in that sense they are a good option. However, only you can tell whether or not they are a good option for you according to your needs.

Can I have the option to not use my health insurance?

Yes, you can ask the care provider to bill you and not your health insurance. You will probably have to go to great effort to do this, as all of their systems are geared to bill the insurer. If you want to make sure that the insurer does not get the bill (which would have your diagnosis and treatmen (MORE)

Can debt collectors garnish life insurance dividends?

As with most financial topics, the answer is, "It depends." This is subject to state law; therefore, the answer will vary by state. In my state, the cash value of life insurance, which comes in large part from dividends, is protected from creditors. It is not protected should the owner declare ban (MORE)

What auto insurance options are available in California?

There are many different insurance options available in California and many more places around the United States. In California, you could choose All State, Progressive, or GEICO. All of these auto insurance businesses offer you the best deals and help say you money.

What are some health insurance options for the unemployed?

Health insurance options for the unemployed are very limited and vary from state to state and country to country. In some cases, coverage from a previous employer's group plan may still apply to the individual. In other cases, a spouse or other family member may have a group plan that would cover th (MORE)

What describes dividends paid on life insurance policies?

A dividend represents a distribution of earnings made by a mutual life insurance company to its policyholders. From the standpoint of corporate structure, a mutual company is owned by the policyholders--therefore, they benefit from the earnings. The distribution may be in cash, by additional paid-u (MORE)

What are some different health insurance options?

Health insurance funds generally offer three different types of policies - Hospital cover, Extras cover and Combined cover. Hospital cover usually provides benefits towards medical costs and ambulance transportation to hospital to be treated, as well as the hospital accommodation costs and theatre (MORE)

What are some options for MetLife auto insurance?

MetLife auto insurance has a vast variety of offers. It covers deductible savings benefits which is good for drivers. It also offers enhanced rental car damage coverage. Safe drives also get credits, discounts and various programs.

What is a renewal option on life insurance policy?

By paying your renewal premia, your life insurance is automaticallyrenewed. When a policy lapses due to non payment of premia, thereis provision for renewal of policy by paying penal interest and bysubmitting 'Declaration of Good Health' form.

Can you suggest options for medical insurance?

Now a days there are many Insurance provider companies offering range of medical Insurance policies, like; individual health Insurance policy, family health Insurance policy, group health plans and others. HDFC ERGO is one of the leading health Insurance policy provider, you can check HDFC ERGO's he (MORE)

What is a life insurance policy dividend?

It's a payment made to the policy owner by the mutual insurancecompany when there is a profit. The policyholders are the owners ofa mutual life insurance company and they share in the profits byreceiving dividend payments from the insurance company.