insurance dividend

insurance dividend definition - business

insurance dividend

A payment by a life insurance company to the holder of a participating whole life insurance policy. Insurance dividends are generally paid annually and depend on the insurance company's investment returns and expenses. Policyholders are generally allowed to choose whether to take a dividend in cash or use it to purchase additional coverage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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