When deciding between participating and non-participating policies there are two main factors to look at: cost and risk.
For those simply seeking to provide a death benefit to their dependents or loved ones with minimal payments, term life insurance is probably the best route. On the other hand, for those looking for an ongoing investment option with fixed premiums and the potential for dividends, participating policies are a good option.
When it comes to risk, non-participating policies are virtually risk-free. You pay premiums to keep your insurance policy active and the insurer takes on most of the risk. With participating policies, however, the risk is shared with policyholders.