Mutual Trust Increases Dividend Payouts for 2020
What is a Dividend in Life Insurance? “The dividend is a portion of the insurance company’s profits that are paid to policyholders as if you were an investor or stockholder.” writes Frank Addessi. The short and simple is that a Dividend is a payout of the company’s profits. These dividends can be relatively large in terms of the payout. However, the size of the payout directly correlates to the companies profit and financial status. In a recent email Mutual Trust said: “Mutual Trust Life Insurance company will increase its dividend payout in 2020. This announcement by the Organization’s Board of Directors is based on Mutual Trust’s solid financial position and its dedication to its policyholders.”
What Policy’s are eligible to receive Dividends?
As many of you already know, whole life policies are generally the only policies that are eligible for Dividends. This can be a good selling point for any agent. That is trying to get more involved in the Life and Financial Markets. Most people don’t really know about products or companies like this. One thing a lot of consumers look for is the best price for the best product.
How can my client use this Dividend?
There are several options out there. For starters, they can get the dividend as a cash payout at the end of every year. Additionally, they could use the dividend to grow the cash value of your policy, this means saving the money and letting it gain interest with the insurance company. Another option might be Premium reduction. You can suggest they use the dividend to reduce the premium for their coverage. They can also Purchase more Insurance. Now this one is good for growing the death benefit and leaving more money for their beneficiaries after the policyholder has passed.
When is the Dividend effective for Mutual Trust?
Mutual Trust will push its new dividend payouts on February 1st, 2020. You can speak to our agent about this policy. Give us a call and we would love to help you better understand the inner workings of Dividends and how they work to benefit your client’s policy. Just ask to speak to the Life and Financial Department. 1-888-539 1633. With that being said this is a tremendous opportunity. To help your client, but also dip your toes into the life and financial aspect of insurance. These policies tend to be easier to sell since there is an extra benefit included. Remember not all insurance companies offer dividends on their policies.
As an added note Mutual Trust had this to say in their email “To help you run illustrations for new business sales, our century II illustrations software, version 5.98, will reflect the 2020 dividend payouts. Version 5.98 will be available for download from the agent web site on December 2, 2019.”