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Insurance Dividend

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Insurance dividend
Money paid annually to policyholders participating in cash value life insurance policies.

Insurance Dividend
An annual fee an insurance company pays to whole life policyholders. The amount of the dividend is determined by the company's board of directors and is not guaranteed. This allows whole life policyholders access to at least part of their benefit before death. The insurance dividend can be taken in cash, but is almost always applied as a discount against future premium payments. This is a distinct advantage of whole life policies, though some analysts believe that insurance dividends do not make up for the expense of whole life insurance compared to term insurance.


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New York Life said it is the only insurer in the market today to declare a long-term-care insurance dividend.
1, 1997 (years subsequent to the tax years at issue in Ceridian), the FTB had taken the position that as a result of Ceridian, CRTC [section]24410 was wholly inoperable, so that no DRD was permitted for dividends received from an insurance company; see Departmental Policy on Section 24410 Insurance Dividend Deductions, FTB Multistate Audit Program Mem.
The February change was boosted by farm subsidy payments and by a speedup of life insurance dividends to veterans (included in transfer payments).
 
 
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