If you own or purchase a participating whole life insurance policy, you may be entitled to earn dividends.
Mutual Trust Life Insurance Company is a mutual life insurer. Mutual life insurers have no shareholders. Rather, they are essentially owned by their policyholders. For that reason, some mutual life insurers—like Mutual Trust—choose to share a portion of their profits with their policyholders, in the form of dividends.
A Distinguished Record
Dividends are not guaranteed, and not all mutual life insurers pay them. But Mutual Trust has a distinguished record of paying dividends for over 100 consecutive years.
Each year our Board of Directors determines the amount of dividends applied to our policies based on our financial results. Of these results, three major factors determine dividends:
- Investment Income – The amount the company earns on investments.
- Mortality Experience – The amount the company pays out in policy benefits.
- Operating Expenses – The amount the company pays to maintain normal business operations.
Choosing Dividend Options
The right dividend option for you will depend on your particular financial goals. You will want to consider your short- and long-term financial goals, as well as your reasons for choosing a particular life insurance policy. To find out which dividend option fits your needs, consult a Mutual Trust insurance advisor.
Mutual Trust offers many dividend options. Policyholders typically choose to receive the dividends in cash, use them to pay all or part of their policy premium, or have them added to the value of their policy as paid-up additional insurance.
Since dividends are considered a return of premium they are not taxable to the owner of the policy. However, interest earnings on dividends left on deposit are taxable. In addition, dividends reduce the cost basis of a policy. If a policy is surrendered and the cash surrender value exceeds the cost basis, the excess is taxable as ordinary income.
For more information about dividends or other products, consult a Mutual Trust insurance advisor.
No information here is offered as tax or legal advice. We recommend you discuss with competent advisors/counsel your individual situation.
Add value to your Covenant whole life insurance policy
With an Annual PUA rider, you can increase the cash value and death benefits of your policy, even after the base policy is fully paid-up. Click here to learn more.
As a Mutual Trust policyholder, you'll be eligible to participate in company earnings through dividends. Income from dividends can be used for other insurance investments. Click here to learn more.
Calculate the Benefits
How do your earnings affect your family? Find out with our Human Life Value Estimator.
How much do you need for retirement? Find out with our Retirement Savings Estimator.
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