Need A Financial Product Forums Insurance Difference between a participating and a non-participating policy

This topic contains 1 reply, has 2 voices, and was last updated by  Sanjay Gupta 3 years, 4 months ago.

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    Sanjay Gupta

    What is the difference between a participating and a non-participating policy?


    When a policy holder is able to share company’s life insurance policy profits it is called a participating policy. On the other hand, when the policy holder is unable to Share Company’s life insurance policy profit it is referred to as the non-participating policy. Reversionary dividends are given in the form of profits to the policy holders and there is no guarantee of these dividends because they keep decreasing or increasing depending on funds.

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