by John Darer CLU ChFC MSSC CeFT RSP CLTC
MassMutual’s 2021 dividend interest rate will be 6% for 2021, which represents a small decrease from 2020. For those personal injury trial lawyers who are interested in a permanent form of life insurance such as whole liife.
MassMutual has proven to be a good value.
What is the Rate of Return on a Whole Life Policy?
While impressive, MassMutual discloses that the dividend interest rate (DIR) is determined annually, subject to change, and is not guaranteed
Dividends for eligible participating life insurance policies primarily consist of investment, mortality and expense components.
It’s important to note that MassMutual reiterates in its public facing materials that the dividend interest rate of return on the life insurance policy is NOT the rate of return
How The Dividend Interest Rate is Applied li7159 (see summary).The DIR is used to determine the investment component of the dividend and should not be the sole basis for comparing insurers or policy performance.
Be mindful of what MassMutual says, should you encounter a settlement planner speaking a word salad of “leveraging dividend history”