Whole Life Insurance II

A non-participating policy does not earn dividends, but premium payments may only be due for a certain number of years. The investment portion of your premium will be guaranteed to earn some interest rate, such as 4%; it may be higher than the guarantee. Since stock companies sell the non-participating policies, the share-holders of the corporation expect a return from your business. In counterpoint to this, the premium payments for non-participating policies is generally lower.