Participating Policy

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Dictionary Says

Definition of 'Participating Policy'

An insurance contract that pays dividends to the policy holder. Dividends are generated from the profits of the insurance company that sold the policy and are typically paid out on an annual basis over the life of the policy. Most policies also include a final or terminal payment that is paid out to the holder when the contract matures. Some participating policies may include a guaranteed dividend amount, which is determined at the onset of the policy.

Also referred to as a "with-profits policy".
Investopedia Says

Investopedia explains 'Participating Policy'

Participating policies are typically life insurance contracts such as a whole life participating policy. The dividend received by the policy holder can be used in several different ways. First, the policy holder can apply the dividend proceeds to the insurance policy's premium payment. Second, the dividend can be kept with the insurance as a deposit in order to generate interest much like a savings account at a bank. Finally, the policy holder can simply receive the dividend payment in cash, much like a dividend payment on a stock.
Search results for

'Participating Policy'

  • Life Insurance: How To Get the Most Out Of Your Policy

    http://www.investopedia.com/articles/pf/06/lifeinsurance.asp
    ... You are entitled to enjoy the fruits of your insurance company's labor,
    for example, dividends if you own a participating policy. ...

  • Intro To Insurance: Types Of Life Insurance | Investopedia

    http://www.investopedia.com/university/insurance/insurance8.asp
    ... This is known as a participating whole life policy, which combines the benefits
    of permanent life insurance protection with a savings component, and provides ...

  • Series 6 Study Guide - Investment Securities - Corporate ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-securities-preferred-stock.asp
    ... Participating preferred stock: This type of preferred stock pays the holder a higher
    dividend above and beyond a certain level of its common dividend when a ...

  • Understanding Lender-Required Flood Insurance

    http://www.investopedia.com/articles/insurance/10/understanding-lender-required-flood-insurance.asp
    ... You can find a participating insurance company at the FEMA website. ... However, you
    do have some control over the cost of your policy because you can choose your ...

  • Are The Volunteer Corps Right For You?

    http://www.investopedia.com/articles/younginvestors/07/join-the-corps.asp
    ... The real motivation for participating in either program won't be financial ... journalist
    and editor for a variety of websites, public policy organizations, and ...

  • 9 Tips For Safeguarding Your Accounts

    http://www.investopedia.com/articles/pf/08/account-protection.asp
    ... Account, your participating IDC bank uses its relationship with other participating
    IDC network ... This type of insurance is a policy taken out on you by your ...

  • CFP Study Guide - Property, Casualty and Liability Insurance ...

    http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/cfp4.asp
    ... 17. Insurance Selection and Annuities: 17.1 An Introduction to Insurance Policy
    Selection; 17.2 Participating and Nonparticipating Companies; 17.3 Cost Benefit ...

  • 4 Types Of Insurance Everyone Needs - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/4-Types-Of-Insurance-Everyone-Needs.aspx
    ... While the best option and the least expensive is participating in your employer's ...
    become a luxury less and less can afford, yet even a minimal policy is better ...

  • Is a Canadian resident allowed to participate in a direct stock ...

    http://www.investopedia.com/ask/answers/06/canadiandirectpurchaseplan.asp
    ... There are also no laws preventing Canadians from participating in dividend reinvestment
    plans (DRIPs ... All Rights Reserved | Terms Of Use | Privacy Policy.

  • An Introduction To Complementary Currencies

    http://www.investopedia.com/articles/economics/11/introduction-complementary-currencies.asp
    ... If enough businesses and individuals aren't interested in participating, the currency ...
    and editor for a variety of websites, public policy organizations, and ...

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