The Directors of National Life Group have approved an estimated payment of $67 million in dividends to eligible participating policyholders in 2017.
“This payout is evidence of our financial strength,” said Mehran Assadi, president and chief executive officer of National Life Group.
Mutual companies are not publicly traded; they are owned by policyholders, who reap the benefit of profits above and beyond a company’s expenses and reserves necessary to finance future benefits.
“Dividends paid to policyholders are one of the benefits of our mutual structure,” said Assadi.
“We have been paying dividends since 1855 when, after its first five years of operation, National Life Insurance Company had a balance to distribute through dividends of $11,260,” he said. “We have come a long way since then, but one constant has been the payment of dividends.”
The dividends will be paid to eligible policyholders of National Life Insurance Company.
For policies bought after January 1, 1999 the rate for all participating (whole life) business will be unchanged from the 2016 dividend scale. For policies bought before January 1, 1999 the dividend rate will be decreased slightly to reflect a reduction in investment income due to low interest rates.
The Board of Directors approved the dividend payments at a meeting on November 11, 2016.
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