Nonparticipating Life Insurance Policy

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Nonparticipating life insurance policy

Life insurance policy whose policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the insurer on premiums paid.

A life insurance policy in which the policyholder does not have the right to receive a portion of the investments that the insurance company makes with the policyholder's premiums. That is, in a nonparticipating life insurance policy, the policyholder makes his/her premiums and, in exchange, the beneficiary receives a lump sum upon the policyholder's death. This sum will not increase or decrease depending on the performance of the insurance company's portfolio.

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