Readers Question:”What type of life insurance policy pays dividends:whole life or equity or participating or nonforfeitable?”

The City of Camden is the county seat of Camden County, New Jersey in the United States. It is located just across the Delaware River from Philadelphia, Pennsylvania. As of the United States 2000 Census, the city had a total population of 79,904. One of the most popular attractions of Camden is the city’s waterfront, along the Delaware River. The waterfront is highlighted by its four main attractions, the USS New Jersey; the Susquehanna Bank Center; Campbell’s Field; and the Adventure Aquarium.

The Adventure Aquarium was originally opened in 1992 as the New Jersey State Aquarium at Camden. In 2005 after extensive renovation the aquarium was reopened under the name Adventure Aquarium. The aquarium was one of the original centerpieces in Camden’s plans for revitalizing their city.

Answer to Readers Question: Answer - Dividends are paid by participating life insurance policies. The word “participating” suggests that the owner of the policy would get a dividend on the policy if the company earns one. A life insurance company cannot guarantee a dividend as this depends on the performance of the company. Investment performance as well as operating costs come into play.

Whole life policies are participating policies.

Equity linked policies are life insurance policies that, to put it simply, are hooked up with an investment portfolio…like mutual funds for example. Examples are variable universal life insurance policies and variable life insurance policies. These policies are sold only by “prospectus”. The agent must have an NASD license to sell these policies. This license is different from his regular life insurance license.

Nonforfeiture values is if at any time in the future a policy owner wishes to terminate premium payment of a participating life insurance policy policy there are certain option made available by the life insurance company. S/he may surrender the policy for its cash value, extended term life insurance may be purchased with the cash values or the cash values may be applied to purchase a reduced paid up policy.