With-Profits Policy

Definition

  • An insurance policy that pays to the policyholder a share of the profits earned by an insurance company. Profits are distributed usually in the form of annual or monthly dividends, but a final or terminal payment at maturity is also common. Depending on the policy, a guaranteed dividend amount may be included. With-profits policies, also known as "participating policies", are typically life insurance contracts.

Synonyms
with-profits insurance policy, participating life insurance policy, participating policy, participating insurance policy, with-profits life insurance policy

Related Terms and Acronyms

  • Death Benefit (DB) Acronym, Very Important,
    • A payment or series of payments made to the beneficiaries of a life insurance policy.
    An amount paid to a beneficiary in a life linsurance policy.
  • Dividend Definition,
    • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
  • Insurance Policy Definition,
    • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • Paid-up Additional Insurance Definition,
    • The option for a policyholder to purchase additional insurance coverage with additional premiums or policy dividends.
  • Permanent Life Insurance Definition,
    • A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
  • Policyholder Dividend Ratio Definition,
    • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • Premium Definition,
    • A payment made to an insurance company for insurance coverage.
  • Stock Insurance Company Definition,
    • An insurance company with multiple stockholders each owning shares in the corporation.
  • Vanishing Premium Policy Definition,
    • A life insurance policy where policy dividends are used to pay the policy's premiums.
  • Whole Life Insurance Definition,
    • Permanent life insurance with level premiums for the policyholder's entire lifetime.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage