Term Life Insurance

Term Life Insurance: Hints, Tips, and Suggestions Term Life Insurance Guide
	Most non-participating policies have fixed payments -- premiums -- based on what the company believes it will cost to provide insurance protection. Some newer non-participating policies have premiums that may be changed periodically, subject to a maximum rate stated in the policy. The amount of the premium charged for a non-participating policy depends on what the company believes it will cost to provide coverage to the policy holder. Participating policies, on the other hand, have somewhat higher premiums with a built in "cushion" to allow for fluctuations in the company's earnings and expenses. At the end of the year, the company computes its actual costs and refunds to the policyholder any portion of the premium it does not need. The refund is called the "policy dividend." Those who buy participating policies can expect their cost to be "reduced" through periodic policy dividends, which are not taxable. The links here, especially those on the left, should be of help to you.
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Term Life Insurance: Hints, Tips, and Suggestions

Term Life Insurance Guide