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Demystifying Participating Life Insurance

Updated: Dec 10, 2019

When considering participating life insurance, illustrations help explain how a policy’s values could grow. It’s easy to focus on comparing numbers, particularly when it comes to the dividend scale interest rate.

However, that rate is only one factor that can impact participating policyowner dividends. You might think that if you buy a policy from a company that offers a higher dividend scale interest rate today, your policy’s values will grow faster in the future.

Rates go up and down over time. So the decision to buy a policy shouldn’t be solely based on the current dividend scale interest rate, because it’s not guaranteed.

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