Participating life insurance policyholders have the opportunity to earn policyholder dividends. When you purchase a participating life insurance policy, your premiums are credited to an account called the participating account. Participating policyholders are eligible to receive earnings from that account.
Dividends are not guaranteed. They may be affected by several experience factors. Participating policies are grouped based on certain factors such as type of policy and when it was purchased. The experience of each group determines the dividends available to be allocated within the group.
Dividends may vary upward or downward from those illustrated depending on a number of variables. Assumption Life’s appointed actuary looks at the mortality experience, the expense experience (including taxes) and the investment experience for each group of participating policies and makes an annual recommendation to the Board of Directors. The Board dictates annually the dividend scales allocated to the next year.
