Dividend Illustration
Updated: 09 June 2023
What Does Dividend Illustration Mean?
A dividend illustration, in the context of insurance, refers to the year-by-year dividends that an individual who decides to purchase the policy can expect to receive based on a set of predetermined factors.
Insuranceopedia Explains Dividend Illustration
A dividend illustration helps potential clients see the benefits of an insurance policy in terms of dividend returns. It shows the dividends that will be paid to the insured as long as there are no future changes to the factors the insurance company considered when it calculated the dividends. An actuary is tasked with the responsibility of making sure that the dividend illustration reflects the true financial state of the company.
Related Definitions
Related Terms
Related Articles
Life Insurance Companies: 67 of the Biggest Carriers in the U.S.
Direct Recognition Life Insurance vs Non-Direct: Which Is Better?
Farm Insurance: 9 Essential Policies to Know
Life Insurance Endowments: Know Your Options
Life Insurance as an Investment? It’s Called Permanent Insurance
Insurance Self-Service Portal: The Future of Customer Experience
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
Texas is the state with most people killed by animals in the US
Life Insurance Statistics
How Long Do You Have To Have Life Insurance Before You Die?
Life Insurance Statistics
What Students Need to Know About Insurance Coverage During Internships