Life Insurance Dividend Options

As a mutual life insurance company, New York Life has remained financially strong for over 175 years—always honoring policy commitments and, for 166 consecutive years, life insurance dividends have gone to eligible participating whole life policyowners. Dividends on whole life insurance are not guaranteed but New York Life has paid them every year since 1854.

How does it work?

As a whole life policyowner with New York Life, you’re a member of the mutual company and, as such, eligible to receive dividends on life insurance. Each year, the company carefully evaluates its investment results, claims, expenses, and results from other business lines before it considers how much to return to participating policyholders as dividends (deemed returns of premiums). If the company actually paid out less than was originally forecasted, those results can support the dividends.

When dividends are awarded, New York Life policyowners are provided with a variety of options on how their dividends can be used. After all, whole life dividends are returns of premiums you’ve paid.

Life insurance dividends are a fundamental part of New York Life’s business, providing policyowners with ongoing benefits. In 2024, New York Life distributed a record dividend of $2.2 billion to eligible participating policy owners.

As a New York Life policy owner, your life insurance dividend can be used in different ways.

You can use your dividend to purchase additional life insurance, which will increase your cash value, or you can also use it to offset the cost of your insurance premiums.

The most efficient way to build your annual dividends into your financial strategy is to work directly with a New York Life financial professional. You have options on how you choose to use a dividend, so it makes sense to get some guidance from an expert who can help you optimize your financial growth over time with the right savings vehicles.

Getting the most out of your New York Life solutions will put you on the path to a secure and comfortable future.