Yes. E.g., my whole life policy has a guaranteed rate of about 1.9%. The projected rate is around 4.4% until I get a bit older, then it starts dropping.In related news, a scammer sent me an email asking to help get $34 million out of his country. I like how this article on NerdWallet explains this "dividend" in one sentence: "Most life insurance dividends are considered a return of an overpayment of premium, rather than an investment gain." https://www.nerdwallet.com/article/insu ... -dividendsYou all were right about pushy. He had his secretary call me to tell me I’m making a mistake. Im getting “dividends this year of 16.2% and that’s way better than the s&p stock market which is at 10.4%” “and the policies on the girls are so good I would buy them from you if I could because nobody offers policies that low anymore”. She’s sending me an email with my surrender values and a “chart” to show me what she’s talking about.
Thanks for posting. Someone may see this in the future and avoid a mistake. Others may not have the advantage of youth that you have to recover your finances.
Part of the difference is due to overpayment, mostly because people cancel whole life before they die. All the premiums paid in but not paid out are part of the dividend. As you get closer to the end of the policy, most of what the insurance company is paying out is your own money. My ~$90k cash value means the insurance company is only on the hook for $160k instead of $250k.
It is in my best interest for everyone else in my policy's cohort to cancel so that I can reap the benefits or live to 100 so that most of the payout is not the insurance company's money.
Statistics: Posted by exodusNH — Sat Sep 20, 2025 1:29 pm — Replies 85 — Views 7283