How Does A Whole Life Insurance Policy Work? 
Participating whole life insurance is the most cryptic contract in the insurance and financial product inventory . It is difficult to disassemble into distinguishable parts . That being said , a base policy in participating whole life insurance is a guaranteed premium for a guaranteed death benefit for the maturity of the contract , generally between age 100 and 121 . The dominate portfolio of many participating whole life insurance company is investment grade government bonds . Those portfolio returns coupled with a return of unused premium form the basis of a dividend . 