Which Type Of Life Insurance Policy Pays A Dividend? 
Dividends are paid by Mutual Companies . There are three main types of Life insurance companies : Stock companies , who pay profits to stockholders , Fraternal 's , who give back profits in the form of extra benefits to their policy holders , and Mutual companies . Mutual companies pay back excess profits in the form of dividends to their policy holders . Look for the word `` Mutual '' in the company name , as one indicator . Dividends are usually only paid on whole life policies . 