What Life Insurance Policy Pays Dividends? 
Paying life insurance dividends can be paid on any type of policy from any participating life insurance carrier . The most common companies that pay dividends are called mutual insurance companies . Some of the more common names of mutual insurance companies are State Farm , NY Life and Northwestern Mutual . Mutual insurance companies consider the policyholders part owners of the company and share a portion of the profits as dividends . You may or may not receive a benefit based on the year 's profits . You may find mutual company premiums a bit more expensive than none mutual companies with an expectation of paying their dividends . When purchasing a life insurance policy you should find the best product at the best price to cover your unique situation , not on who pays a dividend or not . 