Cash Value Life Insurance provides a permanent life insurance option that includes a savings element, allowing policyholders to accumulate a cash reserve over time within their insurance policies.
Money paid, usually once a year, to policyholders with participating policies. Dividend rates are based on the insurance company's mortality experience, administrative expenses, and investment returns. Policyholders may choose to take these dividends in cash or may purchase additional life insurance.
A split-dollar life insurance policy is a strategy in which the premiums, ownership rights, and death proceeds are divided between an employer and an employee, or a parent and a child. This type of policy can be a useful tool for providing benefits while sharing costs and risks.
