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DIVIDEND-PAYING WHOLE LIFE INSURANCE QUOTE

Build Wealth While Protecting Your Loved Ones

Guaranteed coverage plus added benefit of potential dividends from your insurer.

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What Is a Dividend-Paying Whole Life Insurance Policy?

A dividend-paying whole life insurance policy is a type of permanent life insurance that provides lifetime coverage and guaranteed cash value growth, with the added advantage of being eligible to earn dividends from the insurance company. While dividends are not guaranteed, they can enhance your policy’s long-term value, offering opportunities for increased cash growth, reduced premiums, or expanded coverage.

Lifelong Protection

Permanent coverage with a guaranteed death benefit that financially protects your loved ones as long as premiums are paid

Guaranteed Cash Value

Accumulates guaranteed cash value over time, creating a stable financial foundation and a source of long-term value you can rely on

Fixed Premiums

Premium payments stay the same for the life of the policy, offering predictability and protection against rising insurance costs

Potential Dividends

Eligible to receive dividends (not guaranteed), which can boost your policy’s long-term value1

Flexible Growth Opportunities

Choose how to use dividends — take them in cash, reduce premiums, let them accumulate with interest, or reinvest to grow coverage and cash value

Access To Cash

Option for policy loans or withdrawals from cash value (these should only be taken in emergency situations if needed)2

Tax Advantages

Cash value grows tax-deferred, and policy loans are generally income-tax-free, providing tax-efficient flexibility for your long-term planning
Couple reviewing their finances together

How a Dividend-Paying Whole Life Insurance Policy Works

Dividend-paying whole life insurance provides lifelong coverage, guaranteed cash value growth, and the potential to receive dividends. Your premiums stay level, part of each payment goes toward insurance costs, and the rest builds cash value. If eligible, your policy may also earn dividends that can add growth and flexibility over time.

  1. Pay Fixed Premiums: You make regular fixed payments based on your coverage amount. Premiums never increase, providing predictability and long-term stability.
  2. Policy Costs Are Covered: A portion of each premium goes toward the cost of insurance and administrative expenses, keeping your policy active and in force.
  3. Cash Value Grows: The rest of your premium funds your cash value, which grows at a guaranteed rate over time. Your policy may also earn non-guaranteed dividends that can enhance cash value, reduce premiums, or buy more coverage.
  4. Potential Dividends: If declared, dividends are paid annually and can be taken in cash, left to accumulate with interest, used to lower premiums, or reinvested to grow your policy’s value and benefits.1
  5. Guaranteed Death Benefit: When the insured passes away, the policy pays a guaranteed death benefit to your beneficiaries (reduced by any outstanding loans or withdrawals).

Want a deeper dive? Read our full guide:  What Is Dividend-Paying Whole Life Insurance?

Why Choose Western & Southern?

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Financial Strength

High ratings reflect stability you can count on
established 1888

Trusted for Over 135 Years

Helping families protect their future since 1888

Serving Millions Nationwide

Trusted by families across the 50 states

Is Dividend-Paying Whole Life Insurance Right for You?

Dividend-paying whole life insurance offers lifetime coverage, guaranteed cash value, fixed premiums, and the opportunity to earn dividends that can add long-term growth and flexibility. It’s designed for people who value security but also want the potential to increase their policy’s value over time.

Below are some individuals who might benefit from dividend-paying whole life insurance:

Couple researching guaranteed whole life insurance

Security Seekers

People who want guaranteed lifelong coverage, predictable payments, and steady cash value growth, with the added possibility of dividends for extra growth.
Grandmother protecting her grandchild with IUL

Legacy Builders

Individuals who want to leave a meaningful financial gift to children, grandchildren, or charitable organizations, with confidence in a guaranteed death benefit and the potential to enhance that legacy through dividends.
Business owners discussing IUL options

Business Owners

Those seeking stable protection for buy-sell agreements, key person coverage, or a tax-advantaged way to build cash value that can support business needs.
Couple reviewing finances together

Long-Term Planners

People focused on building financial flexibility – using dividends and cash value for retirement income, emergencies, or other opportunities, while still keeping lifelong coverage in place.
Parents reviewing insurance policy with daughter

Parents & Grandparents

Adults who want to lock in permanent coverage for themselves, or build a long-term financial foundation for a child or grandchild with a policy that grows over time and may benefit from dividends.

It’s important to remember that dividend-paying whole life Insurance is a long-term commitment. Premiums are fixed, and early surrender may reduce the cash value. Still, for those who value guarantees plus the opportunity for growth, it can be a powerful and versatile financial tool.

Not sure if dividend-paying whole life is right for you? Compare all types of Whole Life Insurance.

Frequently Asked Questions About Dividend-Paying Whole Life Insurance

What is a dividend-paying whole life insurance quote based on?
Your quote is tailored to you. It reflects factors such as your age, health, desired coverage amount, payment schedule, and any riders you choose. Healthier applicants generally pay lower premiums, but every quote is designed to show how the policy can meet your long-term goals. 

How do dividends work in a dividend-paying whole life policy?

Dividends are not guaranteed, but when declared, they give you added flexibility. You can:

  • Take dividends as cash,
  • Use them to reduce your premiums,
  • Let them accumulate with interest, or
  • Purchase paid-up additions that increase both your death benefit and cash value.

Is participating whole life the same as dividend-paying whole life?
Yes. Participating whole life insurance is simply another way of saying the policy may pay dividends if the insurer performs well. Non-participating whole life policies do not pay dividends. Always confirm your policy type when reviewing your illustration. 

Are dividends from dividend-paying whole life insurance guaranteed?
No. Dividends depend on the financial performance of the insurance company. What is guaranteed are your fixed premiums, guaranteed death benefit, and guaranteed cash value accumulation. Dividends, if declared, are an added advantage. 

How do I buy dividend-paying whole life insurance with confidence?
Start by requesting a personalized dividend-paying whole life insurance quote. Then, review the guarantees, the insurer’s dividend history, and your budget with a licensed professional. Choosing a premium you can comfortably sustain ensures your policy delivers value for decades to come. 

What are common ways people use whole life policy dividends?
Many policyholders reinvest dividends into paid-up additions, building more long-term coverage and cash value. Others use them to reduce out-of-pocket premium payments or simply take them as cash. The best choice depends on your personal financial goals. 

What makes the best dividend-paying whole life insurance for me?
The right policy balances strong guarantees and long-term value. Look at the insurer’s financial strength, dividend track record, and rider options. A trusted advisor can help tailor the policy to your needs, whether your goal is protection, savings growth, or leaving a legacy. 
IMPORTANT DISCLOSURES

1 Dividends are not guaranteed and may change at any time. Interest is charged on loans, they may generate an income tax liability, reduce the Account Value and the Death Benefit, and may cause the policy to lapse. Withdrawals may be subject to charges, withdrawals of taxable amounts are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty.

2 Withdrawing or taking a loan from your policy may reduce its cash value, death benefit, and have tax implications.

Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

Life insurance policies contain certain exclusions, limitations, reductions of benefits and terms for keeping them in force. Please contact a financial representative for complete details.

Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value.