Annual Dividend (Insurance)

Annual insurance dividends usually apply to whole life insurance. In this instance, you’ll receive a yearly dividend based on how much your policy is worth. So, if you take out a $25,000 policy with a five percent dividend, you would receive $1250 per year.

The important thing to know is that not all life insurance policies pay dividends, and not all insurance companies are created equally. Know the fine print of your contract, and the history and rating of the insurance company you choose. After all, knowledge is power.