Money returned to policyholders from an insurance company's earnings. Considered a partial premium refund rather than a taxable distribution, reflecting the difference between the premium charged and actual losses. Many life insurance policies and some property/casualty policies pay dividends to their owners. Life insurance policies that pay dividends are called participating policies.

"Dividend" In Context

"The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics around the investing world. Procter & Gamble has been paying dividends for 122 years, and it's raised its dividend payout for ..."