Exemptions to the Individual Mandate
There are some cases where there is no penalty to not having coverage.
Participating policies may pay the policyowner a dividend. This dividend represents a return of premium based on the company’s claims, investment, and administrative experience.
You may select one of several ways to receive your dividends.
Dividends are distributed annually.
You should review your dividend option from time to time. This insures your dividend dollar is being used to your best advantage.
The dividend is paid directly to you each year in cash.
The dividend is used to pay part of your premium instead of being paid directly to you.
You will receive a notice from the company showing the amount of the dividend and how much premium you have left to pay.
You may leave your dividends with the company to earn interest.
All or any part of the total amount left on deposit may be withdrawn by you at any time. However, interest may be taxable.
You may use the dividend to purchase additional life insurance on a paid-up basis on the same plan as your regular policy.
This is one way to buy additional life insurance without having to provide evidence of insurability.
You may use the dividend to buy one-year term insurance.
Substantial additional insurance can be purchased at term rates. However, like all term insurance, the coverage is temporary and gets more expensive as you age.
Any unused portion of the dividend may be left on deposit with the company to earn interest.
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