When it comes to the best whole life insurance companies, participating whole life insurance companies of mutual insurance companies, where the insurance company pays a dividend to participating policyholders, are the best insurance companies of whole life available in the market.
In addition, a properly designed dividend-paying whole life insurance policy focused on cash value growth is a great vehicle for building wealth and leaving a legacy.
don’t you think so?
Well, stick around for a while because in the next article covering the best whole life insurance companies, we’ll cover the benefits of whole life insurance that pays dividends and dispel the lies surrounding this amazing insurance product and vehicle. savings.
Now, if you’re considering cash value life insurance for a variety of reasons, you’ll probably ask at some point who the Top 10 Whole Life Insurance Companies are before you shop around for an individual policy.
The good news is that below we’ll provide you with our top 10 dividend paying whole life insurance companies.
I just know that…
In the world of best whole life insurance companies, there are several top-rated insurers with impressive track records of paying life insurance dividends and delivering strong performance even in the worst economic crises. in our nation’s history (ie, the great depression and the great recession).
In Insurance & Estates, we prioritize the use of cash value life insurance for wealth building and retirement planning.
So, our evaluation of the best dividend-paying life insurance companies tends to favor those companies that offer the greatest accumulation of cash value through additional clauses, such as additions.
The goal of maximizing cash value growth in a whole life policy to build wealth is to enable the policyholder to:
To set the stage for this top 10 guide…
Our goal is that this guide will give you some perspective on what to look for when buying whole life insurance companies for the purpose of obtaining a superior tax-advantaged asset and point out those insurance companies whole life with dividends that tend to outshine others.
what is whole life insurance that pays dividends?
whole life insurance as a “safe cube”
Whole life insurance provides a “safe cube” because of the guarantees these specially designed policies provide. when we say “safe bucket” we mean a place where you can put your money without fear of your equity going down because of a housing or stock market crash.
Guarantees offered with whole life policies are a guaranteed level premium, a guaranteed lifetime death benefit, and guaranteed cash value accumulation.
A guaranteed level premium provides a stable floor where you know you’ll only have to pay the same fixed premium and not a penny more.
A guaranteed death benefit provides peace of mind knowing that if you die prematurely, your beneficiary will receive the full guaranteed death benefit tax-free.
and guaranteed cash value growth provides a year-over-year increase in the total cash value of your policy, so your cash value grows in true compound interest style.
However, participating whole life policies go one step further and offer annual dividend payments to policyholders.
Dividend Whole Life Insurance is a permanent life insurance policy in which the insurance provider offers a return of the premium to the policyholder in the form of a dividend.
As noted, not all life insurance offers dividends. Dividend-paying permanent life insurance is unique to participating permanent life insurance.
Dividends are not guaranteed, but most companies that offer this type of life insurance policy have consistently paid dividends for the past 100 years or more.
This type of dividend payment coverage is also known as participating whole life insurance because the policyholder participates in the profits of the insurance company.
In the remaining article, we will alternate between using the word share and paying dividends over a lifetime.
so know that when we do this we mean the same product. We will also attempt to provide a comparison of life insurance dividend history for companies where data is available, for a comparison of dividend rates.
one last thing to mention. With life insurance, there are a few key players.
the policyholder, the company, the insured and the beneficiary.
The owner is often, but not always, the insured.
The policy is a legal contract between the owner and the company.
The insurance company pays a lump sum death benefit to the beneficiary of the policy upon the death of the insured.
In the following article we will refer to the owner and insured as “you” in order to make this a more pleasurable read.
Okay, now let’s move on to the criteria we used to create our list of highest paying whole life insurance companies.
the criteria we use to determine the top 10 whole life policies
Although many of the companies listed are among the largest life insurance companies, that was not a criteria we used to determine who to include on our list. rather, our chosen criteria for reviewing our list of the 10 best permanent life companies are as follows.
criterion 1 – mutual society versus public limited company
according to kiplinger’s personal finance magazine, when looking for cash value life insurance, “a mutual company is often your best option.”(1)
The reason a mutual is preferred over a corporation is that the policyholder is a “member” of a mutual that ” participates” in the insurance provider’s investment earnings and ability to select risk, unlike non-participating whole life insurance coverage from a corporation, where there are typically no dividends.
As a participant, the policyholder in a mutual life insurance company receives tax-free dividends on the cash value, which is not income but a return of premium.
Let’s emphasize this point…
Paying dividends to policyholders offers significant tax advantages for cash value growth because dividends are not taxed as income, but are considered premiums under current tax laws overpaid claims that are reimbursed to policyholders.
Because this exclusive tax-friendly environment for participating permanent life insurance policies is a key advantage, you’ll understand why we tend to prefer mutual companies on our list of best companies of permanent life insurance.
A related reason why a mutual life insurance company is preferable is that excess earnings are not used for purposes that do not benefit policyholders, such as large bonuses for executives, which could create a conflict if It is a public limited company. Thus, a mutual company eliminates this possible conflict.
criterion 2: performance history
(cash value accumulation, dividend payments, loan rates)
Our top 10 dividend paying whole life insurance companies have a strong track record of paying dividends, as we believe this is key to providing a reliable expectation of guaranteed growth and high cash value potential.
Life insurance dividends are a key ingredient that helps your policy perform. Your cash value remains intact, allowing for true long-term compound growth, thanks to a guaranteed interest rate and dividends.
Here, we emphasize that dividends are not guaranteed, and this fact is often touted by critics of whole life insurance.
To this we say…okay…and yet, based on history, our selected whole life insurance companies have a strong track record of continuing to pay dividends through all types of conditions and economic cycles, including the great depression and the great recession.
Many of the best whole life companies have paid consistent dividends year after year for over 100 years.
velocity of money
We believe in the speed of money and have found all of life to be a great “home base” for your money when it’s not in use, with easy access to keep it moving when the time is right.
It’s best to access your policy money through life insurance loans. but for the loans to be more effective, the interest rates of the loans must be taken into account.
When designing a whole life policy, the cost of borrowing versus ongoing dividend rates is a key focus because the goal is often to maintain a desirable “arbitrage” in the rate of your loan and the asset your loan uses to buy.
criterion 3 – stability
(company history, reliability)
Our Top 10 Dividend Paying Life Insurance Companies have a strong history of stability, as we believe this is essential to maximizing your “safe investment bucket “.
Therefore, we only focus on well-established mutual whole life insurance companies with solid financial strength and a superior credit rating.
we use the ratings of a.m. best as a point of reference when comparing companies… is our preference, although we invite you to check the rating index of your choice (fitch, moody’s or standard & poor’s) . morning best grades range from a++ at the top to d- at the bottom.(3)
click the following to read more about top rated life insurance companies.
criterion 4 – flexibility
(products, design, convertibility, paid add-on options)
In a nutshell, some companies are more flexible than others when it comes to premium design, paid add-ons, and structuring a policy that suits your goals.
For our purposes, flexibility refers to both the availability of various riders and the flexibility to allow additional insurance payment and other ways to accommodate those seeking to maximize cash value accumulation.
At the end of the day, an important factor is how accommodating the insurance company is to you in maximizing your policy to build wealth.
Some insurers seem like good candidates but fail the test due to rigid “rules” that prevent you from using your policy to its fullest potential.
We have chosen to avoid those providers and focus on insurers that go out of their way to help you, the insured, whenever possible.
criterion 5: general suitability
(for strategic purposes, maximizing cash value growth)
This is where we tabulate our results and select the Top Ten Permanent Life Insurance CompaniesBest Paying Dividends. A few notes on our criteria before revealing our top 10 list…
We do not include direct recognition companies vs. non-direct recognition companies in our general criteria for a couple of reasons.
This distinction refers to whether the policy’s loans will have a negative impact on the rate of dividends paid on the policy’s cash value…it simply means that the policy will continue to function as normal, including paying dividends at full rates, regardless of the amount of policy loans owed.
While indirect recognition companies tend to have great respect in certain circles compared to direct recognition companies, we’ve found that many direct recognition companies have a strong performance track record for cash value growth.
Our other reason for not comparing indirect versus direct recognition companies is simply that our review of the best cash value whole life insurance companies is not based strictly on cash value accumulation.
If your emphasis is simply earning a permanent death benefit while building cash value without implementing a personal banking and financial strategy, or even if it’s a bit of both, your specific circumstances may dictate that a direct recognition company is the one for you. best choice.
across the country (or near it)
It’s also worth mentioning that our leading cash value-building permanent life insurance carriers are licensed to sell permanent life insurance policies in at least 40 of the 50 states.
So, without further ado, our top ten participating whole life insurance companies.
Best Whole Life Insurance Companies That Pay Cash Value Dividends
United American Life (aul)
aul is a strong mutual company (a+ rating with a.m. best) and otherwise makes our top 10 list because it is a “non-direct recognition” company that offers a lot of flexibility with its option of additions paid in general life policy.
american united life also offers what is called a decreasing load of paid additions and this means that people can decrease the amount of paid additions that are paid. however, this can backfire because if people get lax with the amounts paid, it can undermine your strategy of accumulating cash value.
Indexed Dividend Credit Option Rider (ido): Legacy and Legacy 121 policyholders can participate in market movements by earning up to double their dividends, without sacrificing guarantees for life.
aul plans to pay more than $31 million in dividend payments for 2021. source.
To learn more about this member of our best whole life insurance companies, see our american united life review.
Ameritas was founded in 1887 and is a direct recognition life insurance company that offers a fair product for wealth building strategies focusing on cash accumulation and are a good company with a stable outlook (A rating with A.M. Best).
meritas is on our list because it is a mutual company that has a strong dividend record and consistent growth despite its direct recognition status.
meritas growth whole life is limited payment life insurance that allows the policy to be fully funded in 10 years. you can add a flexible paid rider to quickly increase cash value growth.
To learn more about this member of our top 10 whole life insurance companies, check out our Ameritas Life Review.
foresters financial offers one of the only participating no-exam whole life insurance policies in the industry. You can get whole life insurance up to $400,000 with 20 payments or paid 100% without an exam.
foresters financial has a rating of a.m. best and is an innovator in the world of life insurance underwriting.
With a guaranteed insurability rider option, this policy should be considered when reviewing the best participating whole life insurance carriers.
The average forester dividend interest rate has remained above 6% for the last 15 years, reaching a fantastic 6.23% in 2018. In 2019, foresters maintained a dividend rate of 6 % and in 2020 the dividend rate was reduced to 5.5%.
To learn more about this member of our best whole life insurance policies, stop by our foresters financial review.
The Guardian is an extremely solid rated company (A++ superior Best), and also direct recognition, but one that is committed to the concept of treating whole life insurance as an asset.
guardian promotes a kind of cash value growth strategy among their agents and although they are direct recognition companies, their direct recognition status doesn’t seem to affect policy performance much.
When it comes to building cash value, Guardian’s 10-Pay Limited Payment Life Insurance product is apparently their strongest offering and needs to be structured correctly (combined with paid add-ons).
We have been advised, and we pass this on to you, to keep a close eye on your professional agents if you work with them, because some tend to prefer the much less advantageous l-99 guardian product.
It’s worth mentioning that Guardian also has ratings for excellent customer service and gets extra points for flexibility because they offer many options for premium payment models.
For 2021, Guardian has announced a dividend payment of $1.05 billion, with a dividend interest rate of 5.65%. source.
To learn more about this member of our best dividend-paying life insurance companies, check out our Life for Guardians review.
lafayette life is another indirect recognition company that has captured a good segment of whole life insurance purists. Reasons for this company’s popularity include its non-direct recognition status, strong business rating (a+ a.m. best rated), and strong performance record.
For us, this company doesn’t stand out like some of the others, but there’s nothing bad to say here either.
the 2020 lafayette life dividend rate is 5.3% on a total dividend payment of more than $67 million.
To learn more about this member of our best life insurance companies, stop by our lafayette life review.
mass mutual fund
MassMutual is a behemoth in the whole life insurance market and lingers among the top choices for all kinds of reasons which include cash value accumulation and wealth building.
massmutual is a mutual company that consistently ranks among the top performers in the very important category of dividend payment history. Massmutual’s permanent life insurance dividend track record is excellent, with a 2018 dividend rate of 6.40%. and the company recently announced an estimated 2022 dividend payout of $1.85 billion, with a 6% dividend payout. source.
They offer a strong model for paid additions and their paid 10 product is also very effective at maximizing cash value growth.
massmutual also earns the coveted a.m. top a++ best, and stands out as an overall suitable whole life insurance product for anything from building wealth to securing a permanent death benefit.
It should be noted that massmutual’s convertible term life insurance may be converted to whole life in the future. So if you’re considering permanent coverage, but whole life insurance quotes make you hesitant to commit, consider purchasing a term life policy from one of the major mutual insurance companies so you can make it one of your favorites. main permanent policies.
finally, massmutual is one of the best long term care insurance companies available. You can choose between a pure stand-alone ltci policy or a hybrid ltc insurance policy.
To learn more about this leading permanent life insurance company, check out our review of massmutual.
Minnesota Life is part of the Securian Financial Group, Inc., a holding company in which Minnesota Life is the largest of its affiliates.
The morning best rating for Minnesota Life, through its parent company Securian Financial Group, Inc., is A+.
minnesota life offers two main whole life policies. one focuses primarily on death benefit protection. the other focuses more on cash value growth.
minnesota life offers participating whole life insurance. the company has a strong history of paying dividends, with its dividend rate nearing the top of the pack among the best available dividend-paying whole life policies.
To learn more about this best highly rated whole life insurance company, check out our minnesota life insurance company review.
Mutual Trust Life Insurance Company has been in existence since 1904. The company markets itself as “The Whole Life Company” and is one of the leading mutual companies offering participating life insurance.
has provided a dividend on your participating life insurance for over 100 years.
mutual trust is rated a.m. best.
Their Horizon line of Whole Life products includes Horizon Value, Horizon Warranty, Horizon Blend, and Horizon Legacy.
The company offers two different paid riders, a term rider, premium waiver, and a guaranteed purchase option.
For more information, visit our mutual trust review.
life in new york
New York Life is the largest mutual company in the United States AND one of the largest life insurers in the world. It thus goes without saying that this company has a few things figured out.
They are ranked 61st on the forbes 100 list and have an a++ rating from a.m. best.
This company’s training and sales force are top-notch, and their agents are highly trained in advanced (high net worth) markets. It’s worth mentioning that their agents are captive, meaning they will tend to promote their own products first, with a common reluctance to offer other companies’ products as options.
in 2021, new york life expects to pay participating policyholders a $1.8 billion dividend payment, marking the 167th consecutive year the company has paid dividends to policyholders. policyholders, since 1854.source.
To learn more about this member of our best permanent life insurance companies, see our new york permanent life insurance review.
PennMutual is another solid mutual company (A+ by A.M. Best) and gets very high marks in a number of areas, while also ranking as one of our top picks for early high cash value accumulation.
They are a direct recognition company, and yet the illustration of the company’s whole life policy and its track record of policy performance for cash accumulation is exceptional.
They also score among the highest on our list for flexibility in paid add-on payment options.
penn mutual offers an advantageous clause of exemption from monthly deductions for ages 0 to 55, which is activated after a waiting period of 4 months if you suffer from a long-term disability. the waiver states that if you become disabled before age 60, the policy premiums will not apply.
Another interesting thing about this company is that their sales data reveals a large following of independent brokers compared to some of our other options that operate largely through a captive sales force.
Another benefit of Penn Mutual is that most newly issued permanent policies include a lifetime benefit rider for chronic conditions. the rider allows you to accelerate your death benefit to help cover the costs of long-term care services.
penn mutual has had a stellar dividend interest rate in recent history compared to its peers, with a rate of 6.34% between 2009 and 2018 and 6.10% between 2019 and 2020.
For 2022, Penn Mutual is scheduled to pay $123 million to eligible policyholders at a dividend interest rate of 5.75%.
For more information on this dividend-paying whole life insurance company, check out Penn’s Mutual Review.
northwestern mutual is the current reigning champion as the highest rated life insurance company in the us. uu. (a++ superior by a.m. best) that is extremely committed to maintaining financial strength.
This is reflected in their lifetime products, which are best summed up as nothing too flashy but reliable with a strong track record of earnings and paying dividends. Also, as a Guardian, they have a commitment to excellent customer service.
In 2021, the company announced a $6.2 billion dividend payment with a 5% interest payment,
for us, northwestern mutual is not a good start because the company only allows captive agents to write policies.
To learn more about this top-rated whole life insurance company, check out our Northwest Mutual Life Insurance review.
MetLife is a “de-mutualized” stock company, putting it in the very minority position as our lone stock company among the mutuals.
The rating of its life insurance subsidiaries is a+ with a.m. best, and we believe that metlife is competing for dividend payouts in whole life insurance even though it is not a mutual company for a number of reasons.
first, despite having demutualized, they have shown a keen interest in remaining competitive in the dividend-paying whole life market. Years ago, they introduced a series of promising lifetime products with the apparent intention of beating Northwestern Mutual on price.
Then around 2013, metlife unveiled a series of products that were actually focused on cash yields and shorter payment terms. these products appear to be solid return revenue generators.
Their products, like 65 Paid and 10 Paid, are solid, though perhaps not as flexible on design features as some of our top 10 picks above.
In 2017, MetLife’s dividend rate on its Whole Life Promise was 4.70%, down from 5% in 2016.
update: As of March 2021, Ohio National announced plans to decommission the company. As a result, we will no longer recommend Ohio National as a top company. font.
ohio national is a strong mutual company (a+ for a.m. best) that has consistently earned high recognition as a strong contender for offering policies that encourage cash accumulation.
Although it is a non-direct recognition company, in recent years it has been overtaken by some of our other options for various reasons. they seem to lack some flexibility for the amount paid, although they may claim otherwise.
Another apparent problem is that, like Guardian, many of the agents promote certain lifetime products that may not be as advantageous for cash accumulation as some of their other products.
We suggest that it is important to do your homework when looking at their offerings to discern the best product to meet your goals.
In 2021, Ohio National plans to pay about $100 million in dividends at a 4.7% dividend rate. source.
To learn more about this member of our best permanent life insurance, visit our national ohio review.
Assurity is another mutual organization offering participating whole life insurance. One of the distinct advantages with Assurity’s LifeScape whole life insurance is that it offers some great riders, such as:
Monthly disability income rider that pays you $300 to $3,000 if you become totally disabled.
critical illness benefit rider that pays you a lump sum of $20,000 to $150,000 if you have a qualifying serious illness, such as heart attack, stroke or cancer.
assurity paid $17.4 million in dividends to participating policyholders in 2015.
Probably the only downside to Assurity is its lower a rating. m. from to-.
To learn more about this whole life insurance company, visit our life insurance review.
dividend paying whole life insurance rates
Inevitably, the question arises as to how much whole life insurance costs. our focus at these top permanent life insurance companies is on the cash accumulation feature, rather than the death benefit.
We aim for high cash surrender values up front so you can use the policy’s cash value for other financial endeavors. As a result, the best permanent life insurance rates are not achieved when comparing a cash value-focused policy to a death benefit-focused policy.
If you want to find cheap whole life insurance premiums, we can help you there. just know that the lower your life insurance premiums, the lower your cash value accumulation growth in the early years.
And if you’re concerned about having a large death benefit but are wary of the high price tag, you can always supplement your life insurance death benefit coverage with a term life insurance rider. Doing so secures a valuable cash value whole life policy, allowing the cash value to “catch up” with the death benefit.
Take note, you can get a whole life insurance illustration that will give you more accurate numbers. just give us a call for your custom artwork.
whole life insurance dividend chart
The information in our lifetime dividend chart is compiled from public sources we believe to be reliable. however, we do not guarantee the accuracy of the information provided.
the best pros and cons of whole life insurance
You can check out our article covering the pros and cons of permanent life insurance. a brief snapshot is provided below.
The best whole life insurance professionals
- guaranteed death benefit
- guaranteed cash value growth
- guaranteed fixed premium
- dividend payments
- additions paid
- increase long-term care benefit
- tax-advantaged asset
- unmapped resource
- initially more expensive than term life insurance
- proper design is essential
The best cons of whole life insurance
best dividend whole life insurance conclusion
And voila, our list of the Top 10 Dividend Paying Whole Life Insurance Companies with Reviews.
Many of the companies listed above offer a fantastic “safe cube” from which to operate your financial base. Having a stable environment, free from the ebbs and flows of the stock market, is a great way to control your emotions and make logical and consistent financial decisions.
And who knows, maybe in the next big market downturn you’ll choose to take out a policy loan from your stable cash value policy and use it to invest in depressed assets like dividend-producing stocks or cash-flowing real estate. .
But the point you shouldn’t miss is this: With permanent life insurance that pays dividends, you have a stable financial foundation from which to make your financial decisions. the value of such a product is incalculable.
We hope our article has been informative and serves as a helpful guide in your search for the right participating whole life policy. To learn more about any or all of our options above or to get feedback on any concerns about permanent life insurance coverage, feel free to contact us today for a free strategy session.