A participating policy may share specified insurer results through dividends or bonuses under the contract.
The distinction that matters
Non-guaranteed participation is different from a guaranteed benefit or deposit return.
What to check
- Check guaranteed values.
- Read bonus and dividend conditions.
- Review surrender terms.
Example to discuss
A policyholder separates an illustrated bonus from the guaranteed amount.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an explanation of terminology found in overseas life-policy material. It does not establish that a similarly named product is currently offered in Australia, or that US guarantees, tax treatment or legal rules apply here.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.