Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

Full Bio →

Written by

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 3, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • There are many life insurance companies that offer policies that pay dividends
  • A whole life insurance policy is the only type of life insurance policy that pays dividends
  • Life insurance policies that pay dividends are more expensive than other types of life insurance policies that don’t pay dividends

There are many life insurance policies to choose from, including term, whole, and universal life insurance. Among these, however, the only life insurance policy that pays dividends to policyholders is whole life insurance.

Many people choose whole life policies because of the quarterly or annual dividends, or a return portion of what was paid in premiums. However, doing so will be more expensive than buying another life insurance policy.

Keep reading to learn more about the best life insurance companies that offer policies that pay dividends, including whole life insurance rates and how to keep them at a minimum.

Ready to compare affordable life insurance companies that offer policies that pay dividends? Enter your ZIP code into our free online tool above for instant life insurance rates from companies near you.

What are the best life insurance companies that offer policies that pay dividends?

Almost every life insurance company is one that offers policies that pay dividends because almost every life insurance company offers whole life insurance. Most whole life insurance policies pay dividends.

Dividend-paying whole life insurance accrues cash-value build-up and pays you a portion of the company’s overall profits. These life insurance policies are great for those that can afford them.

Some of the best life insurance companies that offer policies that pay dividends include:

  • Penn Mutual
  • MassMutual
  • American United Life
  • Guardian
  • Ameritas
  • Foresters
  • Lafayette Life
  • New York Life
  • Minnesota Life

Comparing whole life insurance quotes from life insurance companies that offer policies that pay dividends will give you the best rates.

It will also help you find the best dividend life insurance policy for you. The following table includes monthly whole life insurance rates through Foresters for non-smoking men and women:

Average Monthly Rates for a $250,000 Foresters Whole Life Insurance Policy (Non-Smoker)
Age of InsuredMaleFemale
25$178.68$156.80
30$216.52$188.96
35$267.05$230.52
40$326.33$277.99
45$401.58$349.30
50$499.36$429.14
55$629.30$549.89
60$802.33$700.83
65$1,043.61$912.58
Get Your Rates Quote Now
Compare RatesStart Now →

If you are unsure about whether or not purchasing a dividend whole life insurance policy is the right move, talk over your options with an insurance agent. They will be able to give you all the information you need to make the best choice.

Your one-stop online guide for life insurance quotes. Get free quotes now!

 Secured with SHA-256 Encryption

How do life insurance dividends work?

As stated earlier, life insurance dividends are portions returned of what you have previously paid in premiums. They are a small chunk of your insurance company’s profits paid back to you.

Depending on the insurance company, dividends are paid quarterly or annually, and they are not guaranteed. If you have a dividend-paying whole life insurance policy, your insurance company buys stock using a portion of your premiums to invest.

When the company’s stock investment does well, you receive a dividend as a shareholder. But if the company’s investment does not do well, you are unaffected and will not receive a dividend.

Dividend-paying whole life insurance policies are great because they present minimal risk since big companies are knowledgeable in managing their portfolios and turning a profit, you can never lose your capital.

With a whole life insurance policy that pays dividends, you receive the benefit of dividends on top of life insurance coverage and cash-value build-up.

What can I do with life insurance dividends?

Once you’ve received dividends from your life insurance policy, you have a few options of what to do with them.

You may choose to reinvest your dividends, making them work for you as they accrue interest over time. This is the best choice you can make with your dividends because it allows you to grow your wealth.

There are dividend reinvestment plans that make reinvesting your dividends easy. Talk with your insurance agent about your life insurance dividend options if this is something you’re interested in.

Apart from reinvesting, you have the option of applying the dividends towards your current life insurance premium. This minimizes your out-of-pocket costs and saves you money in the short run.

Finally, you can take the cash value of the dividends, pocketing the money without putting it towards your premiums or reinvesting.

Each of these has its benefit, and only you will know what works the best for you. Make sure you understand your options thoroughly before making a decision.

What You Need to Know About Life Insurance Companies That Offer Policies That Pay Dividends

There are way more life insurance companies that offer policies that pay dividends than there are life insurance companies that don’t offer policies that pay dividends.

Comparing multiple life insurance rates from life insurance companies that offer policies that pay dividends helps reduce your options.

It is helpful to understand how dividends work so that you can use them to your advantage. If your whole life insurance policy pays dividends, you have a few options on how to use them.

You may choose to reinvest your dividends, take their cash value, or put them towards your current life insurance premium.

Investing in a dividend-paying whole life insurance policy is a great option, and those that can take advantage of it should consider doing so. There is little risk involved with the potential return.

Even though whole life insurance rates are more expensive than other life insurance policies, you’re getting more out of it than just coverage.

Regardless of which policy you are looking at, it’s important to know exactly what you need before you buy any coverage. Talk with an insurance agent and compare multiple term, universal, and whole life insurance quotes online.

Ready to buy life insurance from life insurance companies that offer policies that pay dividends? Enter your ZIP code into our free online comparison tool to find the best life insurance companies near you.