Dividends Actually Paid

What Does Dividends Actually Paid Mean?

In the context of insurance, dividends actually paid refer to the total amount or record of dividends that the insured has received throughout the duration of their policy. These dividends typically come from participating life insurance policies, which return a share of the insurer’s annual surplus to policyholders who bought qualifying contracts.

Insuranceopedia Explains Dividends Actually Paid

The amount of dividends actually paid should be accurately recorded. This running total also matters when shoppers compare whole life insurance quotes, because dividends can be used to reduce future premiums or buy additional paid-up coverage, and past payment history is a reasonable indicator of what an insurer tends to pay going forward. In banks, the payout of dividends significantly impacts the institution’s financial standing. The Federal Deposit Insurance Corporation (FDIC) regulates dividend payments to ensure that banks do not become under-capitalized. Additionally, the FDIC has the authority to restrict the issuance of dividends if the institution is in default on any payments owed to it.