No, Term Life Insurance does not pay dividends. It also does not have cash value, and if you quit paying on a Term Life policy, the policy will end without any surrender value.
Universal Life Insurance and non-participating Whole Life also do not pay dividends. Only "participating Whole Life" pays dividends.
President, Lane Independent Agency, Southern California
Dividends are paid by policies which accumulate equity, such as Whole Life. Term life does not accumulate equity, but merely provide death protection (unless of course you buy Term living benefits coverage), so it does NOT pay dividends. I would urge you to talk with your agent. There are many choices out there now which can pay you, and have a variety of premiums which are much more affordable than you might think. Thank you. GARY LANE.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Does term life pay dividends? Currently? No. At one time a very long time ago, some term policies did pay a dividend to policyholders, but we are talking a very long time ago. Current term policies do not pay dividends to policyholders. Term insurance, much like rent, is a temporary arrangement between a individual and a insurance company.
Regional Marketing Director, Capital Choice Financial Group,
No! Term life insurance does not pay dividends nor do you want a dividend-paying policy. First of all, according to an investigation by the FTC way back in 1979, dividends paid by life insurance companies were nothing more than overcharges of premiums to the policy holders in early policy years. This is a very bad financial product sold by agents to low information customers. If you want a clue to this information just ask and agent if you would ever pay taxes on the dividends distributed by insurance companies. Then answer is a resounding no! Do remember this that any whole life, universal life, or variable universal life is as bad deal for the consumer. Only buy term insurance and invest the difference is that best plan to be on and most agents won't talk about this option!
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Universal Life Insurance and non-participating Whole Life also do not pay dividends. Only "participating Whole Life" pays dividends.