Business / Taxes / Participating Policy: When policyholders have what is called a participating policy from a mutual insurance company, they are eligible to receive dividends based on the company?€™s financial performance. When claims are low and the company?€™s investments perform well, dividends tend to rise. On the other hand, when claims are high and investment returns slump, dividends are likely to fall. The dividends on a participating policy aren?€™t guaranteed, so they may not be paid every year. Unlike the dividends paid to a company?€™s shareholders, participating policy dividends are considered a return of premium. As a result, the dividends are not taxed as income. Dividends may typically be paid out as cash, as additional insurance coverage, or may be used to reduce policyholders?€™ premiums or repay policy loans. Rules vary from company to company.
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Policy Verb Synonyms: approach, procedure, (game) plan, design, scheme, programme, method, system, management, conduct, behavior, strategy, tactic(s), principle(s), protocol, regulation, rule, custom, way, practice, ways and means, action
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Business / Finance / Participating Preferred Stock: Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions. MORE
Business / Taxes / Participating Policy: When policyholders have what is called a participating policy from a mutual insurance company, they are eligible to receive dividends based on the company?€™s financial performance. When claims ar MORE
Business / Finance / Participating Life Insurance Policies: Life insurance that pays dividends to policyholders depending on the company's success as provided by few claims and profitable underwritings and investments. MORE