What does Policy Dividend mean? Read on to discover the definition & meaning of the term Policy Dividend - to help you better understand the language used in insurance policies.
a refund of part of the premium on a participating life insurance policy. Amount of payment is determined by subtracting the actual premium expense from the premium charged. The payment can be taken as cash, applied to a purchase an increment of paid-up insurance, left on deposit with the insurance company or applied to purchase term insurance for one year.
We hope the you have a better understanding of the meaning of Policy Dividend.