Listen to a Business English Dialogue about Participating life insurance policies
Ralph: Hey Savannah, have you ever heard of participating life insurance policies?
Savannah: No, I haven’t. What are they?
Ralph: Participating life insurance policies are policies that allow policyholders to receive dividends from the insurance company’s profits, in addition to the death benefit.
Savannah: Oh, I see. So, it’s like getting some of the profits back from the insurance company?
Ralph: Exactly! The dividends can be used to increase the death benefit, reduce premiums, or be taken as cash.
Savannah: That sounds beneficial. Are there any risks associated with participating life insurance policies?
Ralph: One risk is that dividends are not guaranteed and can fluctuate based on the insurance company’s performance.
Savannah: I see. How do policyholders determine which participating life insurance policy is right for them?
Ralph: They should consider factors such as the financial stability of the insurance company, the policy’s premium costs, and the projected dividend history.
Savannah: Got it. Thanks for explaining, Ralph. Participating life insurance policies seem like an interesting option for some people.
Ralph: No problem, Savannah. It’s important to carefully consider all your options when it comes to insurance.
