---
title: "What Is Dividend? Definition | Epic Life Glossary"
description: "A dividend in life insurance is a share of a carrier's surplus paid to owners of participating policies. It is not guaranteed and can change each year..."
url: https://epicline.preview.multisites.ai/glossary/dividend
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Dividend

A dividend in life insurance is a share of a carrier's surplus paid to owners of participating policies. It is not guaranteed and can change each year based on the carrier's results.

## Why it matters

Dividends mostly come from mutual carriers and some stock carriers that issue participating whole life. Owners may take cash, lower premiums, buy paid-up additions, or leave the money to earn interest. Paid-up additions can grow cash value and the death benefit. Because dividends are not promised, do not count on them when you choose a policy.

Source: [law.cornell.edu](https://www.law.cornell.edu/wex/dividend)

[Read next, for familiesWhole life insurance: how cash value works, what it costs, and who it fits](https://epicline.preview.multisites.ai/life-insurance/whole-life)

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