A kind of permanent insurance which is designed for low risk. Over time it will build up a cash value. There are two primary sorts, participating and non-participating. A participating policy is eligible to earn dividends -- it "participates" in the core earnings of the company. Payment of dividends is never guaranteed, however. Presuming they are paid, the policy will eventually become self-supporting (the annual dividends will be high enough to pay the premiums). Premiums are generally due for the life of the policy. Mutual Insurance Companies generally offer participating policies, and the policyholders of the mutuality are the owners of the company.