Video: How to Use Dividends in a Whole Life Insurance Policy

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In a whole life insurance policy, dividends should be re-invested back into the policy to create a larger cash value, but they can be cashed out if necessary. Contact the insurance company to discuss the role of dividends in a whole life insurance policy with advice from an insurance broker in this free video on life insurance.

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Video Transcript

Hello, my name is Vic Schumacher, the company is HPE Financial Services. The question today is how do you use dividends in a life insurance policy. Well, the dividends in the policy itself should be reinvested back in to the policy. You can, based upon the time line of that particular policy, with draw those dividends, and many people in retirement do so. They keep the principal there and they live off the dividends. All you have to do is contact the insurance company and request that those dividends be sent to you on a regular basis. The real question though, with the dividends, is how much will they be? Your premiums have been invested with the insurance company, and that insurance company has now made particular investments in to different companies, mutual funds, stocks, bonds, things of this nature. How secure or those dividends is an important factor, and what is the purpose of those dividends is another important factor. If you really want to cash out the dividends, you can, but if that's the purpose of the policy, that's one thought. The other thought is the dividends, if we leave them in there, the policy will grow and have a better cash value, which is the true purpose of that whole policy, maybe to start with. My name is Vic Schumacher, the company is HPE Financial Services, helping people every day.

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How to Use Dividends in a Whole Life Insurance Policy

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