Not all dividend paying whole life insurance companies are created equal — and the one with the highest dividend rate isn’t always the best choice. We’ve ranked the top 10 mutual carriers for 2026 based on actual cash value performance across thousands of client implementations, not just headline numbers. Below you’ll find updated dividend rates, total payout data, 10-year trend charts, and the policy design factors that separate real wealth-building tools from expensive life insurance with a nice-looking dividend. (New to whole life? Start with our complete guide to whole life insurance for the full picture before diving into carrier comparisons.)
TL;DR — Best Dividend Paying Whole Life Insurance Companies 2026
- Top pick for cash value growth: Penn Mutual — 6.00% dividend rate, record $300M total payout, maximum PUA flexibility
- Highest dividend rate: MassMutual at 6.60% — 158th consecutive year paying dividends, $2.9B total payout
- Only mutual companies qualify: Mutual insurers pay dividends to policyholders, not shareholders — that alignment is why we recommend them exclusively
- Dividend rate ≠ best policy: Policy design, paid-up additions flexibility, and loan structure matter more than the headline rate
- 2026 trend: Every major mutual carrier increased dividend rates from 2024-2026, reflecting the higher interest rate environment
Bottom line: The best whole life insurance company for you depends on your goals — but for cash value accumulation and wealth-building strategies, Penn Mutual consistently outperforms.
Why Trust This Guide
Rated 5.0 on Trustpilot with 285 reviews — the #1 rated life insurance agency. Our team brings 70+ years of combined experience across estate planning law, infinite banking, and whole life policy design. We’re independent brokers, not captive agents — meaning we represent multiple top-rated mutual carriers and recommend based on performance, not sales quotas. Every company on this list has been vetted through thousands of real client implementations since 2017.
Table of Contents
- What Is Dividend Paying Whole Life Insurance?
- How We Select the Top 10
- 2026 Company Comparison Table
- Top 10 Best Whole Life Insurance Companies
- Honorable Mention: Northwestern Mutual
- Dividend Rate History Chart (2016–2026)
- Dividend Payout Amounts Chart (2016–2026)
- Why Policy Design Matters More Than Dividend Rate
- Next Steps
- FAQs
What Is Dividend Paying Whole Life Insurance?
Dividend paying whole life insurance is permanent life insurance from a mutual insurance company that pays annual dividends to policyholders. Unlike stock companies that distribute profits to shareholders, mutual companies return excess earnings to the people who own the policies — you.
These dividends are classified as a return of premium by the IRS, making them tax-free. But calling them “just a return of premium” misses the bigger picture. Mutual insurers invest your premium dollars, generate returns, and share those profits back with you as a policyholder-owner. When reinvested as paid-up additions, those dividends compound year after year — creating tax-advantaged growth that most financial vehicles can’t match.
For a deeper look at how dividends are calculated, historical rates by company, and optimal dividend option strategies at different life stages, see our complete guide to whole life insurance dividends and rate history.
Steve Gibbs, estate planning attorney and co-founder of Insurance & Estates: “Whole life isn’t just life insurance — it’s infrastructure. When you design a policy for maximum cash value, you’re building a financial foundation that lets you move money without asking permission from banks, without triggering taxes, and without market risk. That’s what makes it powerful.”
How We Select the Top 10
Our rankings aren’t pulled from a spreadsheet. They’re based on what we see perform across thousands of real client implementations — policies we’ve designed, placed, and managed since 2017. Here are the five criteria that determine which companies make our list.
1. Mutual Company Structure
According to Kiplinger’s Personal Finance Magazine, when seeking cash value life insurance, “a mutual company is usually your best bet.” We agree. Mutual companies are owned by policyholders, not shareholders — so profits flow back to you as dividends rather than to Wall Street. Every company on our list is a mutual insurer or fraternal benefit society. No exceptions.
2. Dividend Performance History
A single year’s dividend rate tells you very little. We evaluate companies on their long-term dividend consistency — how they performed through the Great Depression, the 2008 financial crisis, COVID, and every rate cycle in between. Most companies on our list have paid dividends for 100+ consecutive years.
3. Policy Design Flexibility
This is where most rankings fall short. A 6.5% dividend rate on a rigid policy with limited paid-up additions options will underperform a 5.75% dividend on a flexible policy that lets you maximize early cash value. We prioritize carriers that accommodate aggressive PUA funding, term blending, and design structures optimized for banking and wealth-building strategies.
Barry Brooksby, certified Infinite Banking Practitioner and licensed insurance professional at Insurance & Estates: “The dividend rate gets all the attention, but it’s only part of the story. What matters is how much of your premium actually goes into cash value in the early years — and that comes down to policy design and how flexible the company is with paid-up additions. A 6% dividend on a poorly designed policy will underperform a 5.5% dividend on a well-designed one every time.”
4. Financial Strength and Stability
We focus on carriers rated A or higher by A.M. Best. These are companies with proven general account management, conservative reserve practices, and the financial durability to honor guarantees decades from now. Where applicable, we also reference S&P and Comdex rankings in our individual company reviews.
5. Overall Suitability for Wealth Building
Our final filter. Some companies look strong on paper but fail in practice — rigid internal rules, inflexible PUA structures, or agent cultures that prioritize death benefit over cash value. We evaluate how accommodating the carrier actually is when you’re trying to maximize a policy for infinite banking or Volume-Based Banking strategies. If the company fights you on optimization, they don’t make the list.
A note on direct recognition vs. non-direct recognition: we don’t use this as a disqualifying criterion. While non-direct recognition companies are often preferred for banking strategies, several direct recognition carriers — Penn Mutual in particular — deliver superior overall performance for cash value growth. Your specific goals determine which matters more.
2026 Dividend Paying Whole Life Insurance Company Comparison
| Rank | Company | 2026 Dividend Rate | Total Payout | Recognition | AM Best | Best For |
|---|---|---|---|---|---|---|
| 1 | Penn Mutual ⭐ | 6.00% | $300M | Direct | A+ | Maximum cash value accumulation, IBC and VBB strategies |
| 2 | Lafayette Life | 5.90% | $123M+ | Non-Direct | A+ | IBC purists, non-direct recognition preference |
| 3 | MassMutual | 6.60% | $2.9B | Non-Direct | A++ | Highest dividend rate, long-term care options |
| 4 | Foresters | 6.00% | — | — | A | No medical exam whole life, simplified underwriting |
| 5 | OneAmerica | +10 bps | — | Non-Direct | A+ | Indexed dividend option, flexible PUA structure |
| 6 | Guardian | 6.25% | $1.7B | Direct | A++ | 10-pay policies, excellent customer service |
| 7 | Minnesota Life | — | — | — | A+ | Cash value-focused product line, Securian backing |
| 8 | New York Life | 6.40% | $2.78B | Direct | A++ | High net worth, estate planning, largest mutual insurer |
| 9 | Mutual Trust | — | — | — | A | “The Whole Life Company,” 100+ years of dividends |
| 10 | Ameritas | 5.10% | — | Direct | A | 10-pay Growth Whole Life, accelerated underwriting |
| ⭐ = I&E top recommendation for cash value accumulation | Rates shown are dividend scale interest rates | Dividends are not guaranteed | — indicates data not yet published for 2026 | Source: Company announcements and annual reports, compiled February 2026 | ||||||
Want to see how these companies compare for your specific situation? We’ll run custom whole life illustrations side by side so you can see real numbers — not just dividend rates.
Top 10 Best Whole Life Insurance Companies
Ranked by overall suitability for cash value accumulation and wealth building. For detailed reviews including product breakdowns, underwriting specifics, and policy comparisons, click through to each company’s full review.
1. Penn Mutual ⭐
Penn Mutual has been in business since 1847 and consistently delivers the strongest cash value accumulation performance across our client implementations. For 2026, Penn Mutual announced a record $300 million total dividend payout at a 6.00% dividend rate — up from just $30 million in 2011, a 10x increase that signals aggressive commitment to policyholders. Their Enhanced Permanent Paid-Up Additions Rider (EPPUA) offers the most flexibility of any carrier on this list, and their waiver of monthly deductions rider provides built-in disability protection. Penn Mutual also offers accelerated underwriting on policies up to $2.5M in coverage.
AM Best: A+ | Recognition: Direct | Best for: Maximum cash value growth, infinite banking, and Volume-Based Banking strategies
Full review: Penn Mutual Life Insurance Review
2. Lafayette Life
Lafayette Life is the go-to for clients who prioritize non-direct recognition — meaning your policy earns full dividends regardless of outstanding loans. A member of the Western & Southern Financial Group, Lafayette Life offers several whole life products (Heritage, Contender, Patriot, Sentinel) with the Sentinel providing the highest early cash value. Their 2026 dividend rate is 5.90% on a total payout exceeding $123 million. Available in 48 states plus D.C. (not available in New York or Alaska).
AM Best: A+ | S&P: AA- | Recognition: Non-Direct | Best for: IBC purists who want uninterrupted dividend crediting during loan activity
Full review: Lafayette Life Insurance Company Review
3. MassMutual
MassMutual carries the highest dividend interest rate on this list at 6.60% for 2026, with a record $2.9 billion total payout — their 158th consecutive year paying dividends. Their 10-pay product effectively maximizes cash value growth when properly structured. MassMutual also offers accelerated underwriting through LifeScore 360 and ranks among the best long-term care insurance companies with both standalone and hybrid LTC options. Worth noting: their convertible term policies allow future conversion to whole life if you’re not ready to commit to permanent coverage yet.
AM Best: A++ | Recognition: Non-Direct | Best for: Highest dividend rate, long-term care planning, clients wanting non-direct recognition from a top-tier carrier
Full review: MassMutual Whole Life Insurance Review
4. Foresters
Foresters Financial offers something no other company on this list can match — a participating whole life policy with no medical exam required, up to $400,000 in coverage. As a fraternal benefit society (not-for-profit) founded in 1874, Foresters operates differently than traditional mutual insurers but delivers competitive results. Their 2026 dividend rate is 6.00% with a guaranteed insurability rider that lets you increase coverage at key life events without re-underwriting.
AM Best: A | Recognition: — | Best for: No medical exam whole life, simplified underwriting, clients with health concerns
Full review: Foresters Financial Review
5. OneAmerica
OneAmerica (through its subsidiary American United Life) is a non-direct recognition carrier that stands out for two reasons: a flexible declining paid-up additions load and their unique Indexed Dividend Crediting Option (IDO) Rider. The IDO allows Legacy and Legacy 121 policyholders to participate in market index movements — potentially earning up to double their standard dividend — without sacrificing whole life guarantees. For 2026, OneAmerica announced a 10-basis-point increase in their dividend interest rate, continuing nearly 150 years of consecutive dividend payments.
AM Best: A+ | S&P: AA- | Recognition: Non-Direct | Best for: Indexed dividend growth potential, flexible PUA structures, non-direct recognition
Full review: OneAmerica Review
6. Guardian
Guardian earns its spot through a combination of financial strength (A++ from AM Best, Comdex 99) and genuine commitment to treating whole life as a wealth-building asset. Their 10-pay limited pay product is their strongest offering when properly structured with paid-up additions. For 2026, Guardian announced $1.7 billion in dividends at a 6.25% interest rate. One thing to watch: some Guardian career agents default to the less advantageous L-99 product. If you’re working with a Guardian agent, make sure you’re getting the right product for cash value optimization.
AM Best: A++ | Recognition: Direct (fixed loans) / Non-Direct (variable loans) | Best for: 10-pay whole life, clients who value top-tier customer service and financial strength
Full review: Guardian Life Insurance Review
7. Minnesota Life (Securian)
Minnesota Life operates under the Securian Financial Group umbrella and offers two distinct whole life product lines — one focused on death benefit protection and another designed specifically for cash value growth. Their dividend payout history consistently ranks near the top among participating carriers. Minnesota Life has not yet published 2026 dividend rate details, but their track record and product flexibility earn them a spot on this list.
AM Best: A+ (Securian Financial Group) | Best for: Cash value-focused product line, clients in states where other carriers have limited availability
Full review: Minnesota Life Insurance Company Review
8. New York Life
New York Life is the largest mutual insurance company in the United States, ranking #61 on the Forbes 100. For 2026, the company announced an estimated $2.78 billion in dividends — the largest payout in their 180-year history. NYL’s sales force is highly trained in advanced and high net worth markets, making them a strong choice for estate planning applications. While their agents aren’t technically captive, they typically prioritize NYL products.
AM Best: A++ | Comdex: 100 | Recognition: Direct | Best for: High net worth clients, estate planning, clients who want the largest and highest-rated mutual insurer
Full review: New York Life Whole Life Insurance Review
9. Mutual Trust
Mutual Trust Life Insurance — known as “The Whole Life Company”® — has been paying dividends on participating policies for over 100 years since their founding in 1904. Their Horizon product line (Value, Guarantee, Blend, Legacy) offers multiple design options with two different paid-up additions riders, term riders, waiver of premium, and a guaranteed purchase option. Mutual Trust has not yet published 2026 dividend details, but their product flexibility and century-long dividend track record keep them on our list.
AM Best: A | Best for: Clients who want a company that lives and breathes whole life — it’s literally all they do
Full review: Mutual Trust Life Insurance Review
10. Ameritas
Ameritas rounds out our top 10 as a mutual company founded in 1887 with a 2026 dividend rate of 5.10%. Their Growth Whole Life product is a 10-pay limited pay policy that can be fully funded in 10 years, with a flexible paid-up rider to accelerate cash value growth. Ameritas also offers Care4Life, an accelerated death benefit rider providing living benefits for critical, chronic, or terminal illness. Despite being a direct recognition company, Ameritas delivers steady performance for clients seeking a shorter premium commitment.
AM Best: A | S&P: A+ | Recognition: Direct | Best for: 10-pay limited funding period, clients who want accelerated underwriting with living benefits
Full review: Ameritas Life Insurance Company Review
Honorable Mention: Northwestern Mutual
Northwestern Mutual holds the highest financial strength ratings available to any U.S. life insurer — A++ from AM Best, AAA from Fitch, Aa1 from Moody’s, and AA+ from S&P — maintained for 35 consecutive years. For 2026, Northwestern Mutual announced a record $9.2 billion dividend payout — nearly $1 billion more than 2025 and the largest in company history. Their 155th consecutive year paying dividends, with approximately $7.9 billion going to whole life policyowners.
So why isn’t the company with the largest dividend payout in the industry in our Top 10?
Captive agent model. Northwestern Mutual only allows their own career agents to sell policies. You cannot work with an independent broker who can compare NWM head-to-head against Penn Mutual, MassMutual, or Guardian using your actual numbers. When you sit down with a Northwestern agent, you’re seeing one company’s illustration — not the best illustration for your situation.
Cash value performance gaps. Independent analysis comparing 10-year actual performance to original illustrations found NWM had the largest gap between projected and actual cash value among major mutual companies — even while their dividend rate remained relatively stable. The headline dividend number looked fine. The policy performance told a different story.
Limited policy design flexibility. Companies like Penn Mutual offer significantly more flexibility with paid-up additions riders, allowing customized designs optimized for early cash value. NWM’s products tend to be more rigid, with less room to structure a policy specifically for banking or wealth-building purposes.
Distribution-phase concerns. Industry practitioners note that NWM policies perform reasonably well during accumulation but underperform when you start taking distributions — which is the entire point of infinite banking and Volume-Based Banking strategies.
Full review: Northwestern Mutual Life Insurance Review
Whole Life Insurance Dividend Rates by Company (2016–2026)
The table below tracks dividend scale interest rates across top whole life insurance companies over the past decade. The trend matters more than any single year — companies consistently increasing rates demonstrate the financial health and policyholder-first philosophy that makes participating whole life a reliable wealth-building vehicle.
| Company | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Trend |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MassMutual | 7.10% | 6.70% | 6.40% | 6.40% | 6.20% | 6.00% | 6.00% | 6.00% | 6.10% | 6.40% | 6.60% | ↑ |
| New York Life | 6.20% | 6.30% | 6.10% | 6.00% | 6.10% | 5.80% | 5.80% | 5.80% | 6.00% | 6.20% | 6.40% | ↑ |
| Guardian Life | 6.05% | 5.85% | 5.85% | 5.85% | 5.65% | 5.65% | 5.65% | 5.75% | 5.90% | 6.10% | 6.25% | ↑ |
| Penn Mutual | 6.34% | 6.34% | 6.34% | 6.10% | 6.10% | 5.75% | 5.75% | 5.75% | 5.75% | 6.00% | 6.00% | → |
| Foresters Financial | 6.83% | 6.58% | 6.23% | 6.00% | 5.80% | 5.25% | 5.80% | — | 5.90% | 6.00% | 6.00%* | ↑ |
| Northwestern Mutual | 5.45% | 5.00% | 4.90% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.15% | 5.50% | 5.75% | ↑ |
| Lafayette Life | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.30% | 5.75% | 5.90% | ↑ |
| Ameritas | 5.15% | 5.00% | 5.00% | 5.00% | 5.00% | 4.75% | 4.60% | 4.60% | 5.00% | 4.90% | 5.10% | → |
| Notes: Rates shown are dividend scale interest rates. Dividends are not guaranteed. *Foresters 2026 rate shown is U.S.; Canada rate is 6.25%. — indicates data not yet announced or unavailable. Trend: ↑ = increasing (3-year), → = stable. Source: Company announcements, annual reports, and industry filings. Data compiled by Insurance & Estates, February 2026. | ||||||||||||
Total Dividend Payouts by Company (2016–2026)
Beyond the dividend interest rate, total payout amounts reveal a company’s scale, financial strength, and commitment to policyholders. But don’t mistake size for performance — Penn Mutual grew their total dividend from $30 million in 2011 to $300 million in 2026, a 10x increase that signals aggressive commitment to policyholders even at smaller scale. The key metric isn’t the absolute dollar amount but the overall trend.
| Company | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Northwestern Mutual | $5.6B | $5.2B | $5.3B | $5.3B | $6.0B | $6.2B | $6.5B | $6.8B | $7.3B | $8.2B | $9.2B |
| MassMutual | $1.7B | $1.6B | $1.6B | $1.72B | $1.7B | $1.7B | $1.85B | $1.9B | $2.2B | $2.5B | $2.9B |
| New York Life | $1.7B | $1.8B | $1.78B | $1.8B | $1.9B | $1.8B | $1.9B | $2.0B | $2.2B | $2.5B | $2.78B |
| Guardian Life | $850M | $847M | $911M | $978M | $982M | $1.05B | $1.13B | $1.26B | $1.4B | $1.56B | $1.7B |
| Penn Mutual | $48M | $58M | $70M | $87M | $100M | $105M | $123M | $163M | $200M | $265M | $300M |
| Lafayette Life | — | — | — | — | $67.3M | $68M | $70.9M | — | $103M | $123.3M | — |
| Notes: Amounts shown are total annual dividend payouts to all policyholders. Dividends are not guaranteed. — indicates data unavailable. Source: Company announcements, annual reports, and press releases. Data compiled by Insurance & Estates, February 2026. | |||||||||||
Why Policy Design Matters More Than Dividend Rate
Here’s what most rankings won’t tell you: the company with the highest dividend rate doesn’t always produce the best whole life insurance policy.
Two carriers with identical dividend rates can produce dramatically different cash value results depending on how the policy is structured. The base whole life contract, the paid-up additions rider flexibility, the term blending options, and the internal cost structure all compound over decades. A well-designed policy from a carrier with a 5.75% dividend will outperform a poorly designed policy from a carrier paying 6.50%.
That’s why we don’t just rank by dividend rate. We rank by what actually shows up in your whole life illustration — guaranteed cash value, net surrender value at year 10 and 20, internal rate of return on premium, and distribution-phase performance when you start taking policy loans.
Steve Gibbs, estate planning attorney and co-founder of Insurance & Estates: “Clients fixate on which company has the highest rate this year. But the real question is consistency. MassMutual hasn’t missed a dividend since 1869. Penn Mutual since 1851. That’s a 175-year stress test that most investments can’t survive.”
Beyond the Dividend Rate: Building a Personal Banking System
If you’ve read this far, you’re probably not just looking for a death benefit with a nice dividend. You’re looking for something more — a financial foundation you control.
That’s exactly what a properly structured, overfunded whole life policy is designed to do. When you combine the right carrier, the right policy design, and the right funding strategy, dividend-paying whole life becomes the infrastructure for a system where you become your own banker — recapturing interest you’d otherwise pay to banks, building tax-free wealth, and creating a generational asset that compounds for decades.
This is what Nelson Nash described as the Infinite Banking Concept, and what we’ve refined into Volume-Based Banking — a methodology focused not just on where your money sits, but on the volume and velocity of capital flowing through your policy. If conventional financial advice has left you sensing something’s missing, this is where the conversation gets interesting.
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Frequently Asked Questions
Which whole life insurance company pays the highest dividends?
MassMutual currently leads with a 6.60% dividend interest rate for 2026 and a record $2.9 billion total payout. However, the highest dividend rate doesn’t automatically mean the best policy. Penn Mutual, at 6.00%, consistently delivers stronger cash value performance due to superior policy design flexibility and paid-up additions efficiency. The dividend rate is one factor — actual illustration performance is what matters.
Are whole life insurance dividends guaranteed?
No — dividends are not guaranteed. They’re declared annually based on the insurance company’s investment returns, mortality experience, and operating expenses. That said, companies like MassMutual (158 consecutive years), Penn Mutual (since 1851), and Northwestern Mutual (since 1872) have paid dividends through the Great Depression, both World Wars, the 2008 financial crisis, and COVID. While past performance doesn’t guarantee future results, a 150+ year track record is the closest thing to a guarantee you’ll find.
Are whole life insurance dividends taxable?
Generally no. The IRS classifies life insurance dividends as a return of premium under IRS Publication 525, making them tax-free as long as they don’t exceed your total premiums paid. If you leave dividends to accumulate at interest, the interest portion may be taxable. When reinvested as paid-up additions, dividends create additional tax-deferred cash value growth — which is why most wealth-building strategies use the PUA dividend option during accumulation years.
What’s the difference between direct recognition and non-direct recognition?
Non-direct recognition companies like Lafayette Life and OneAmerica credit full dividends on your entire cash value — even the portion you’ve borrowed against. Direct recognition companies like Penn Mutual adjust the dividend on the loaned portion, either up or down. Non-direct recognition is often preferred for infinite banking strategies, but some direct recognition carriers still outperform due to their overall policy design and cost efficiency. It’s one factor among many, not the deciding factor.
What should I do with my whole life insurance dividends?
During accumulation years, reinvest them as paid-up additions. PUAs are essentially mini whole life policies purchased with a single premium and stacked onto your base policy — each one generating its own cash value and dividends, creating a compounding engine. During distribution years (retirement or when you’re actively using your policy as a banking system), you may switch to taking dividends as cash or applying them toward policy loan repayment. Your strategy should shift based on your life stage. For a complete breakdown of all six dividend options, see our dividend options guide.
How much does dividend paying whole life insurance cost?
More than term insurance — but that’s comparing apples to oranges. A policy designed for maximum cash value accumulation will have higher premiums because more of your premium is going into the cash value engine through paid-up additions and term blending. The real question isn’t “how much does it cost?” but “how much cash value will I have access to in 5, 10, or 20 years?” For specific quotes based on your age, health, and goals, request a custom illustration.
Why isn’t Northwestern Mutual in your Top 10?
Northwestern Mutual pays the largest total dividend in the industry — $9.2 billion for 2026. But they’re a captive agent company, meaning you can only get their products through Northwestern agents. You can’t compare NWM illustrations head-to-head against Penn Mutual or MassMutual through an independent broker. Additionally, independent analysis shows their policies underperform during the distribution phase — which matters most if you’re using whole life for banking and wealth-building strategies. Read our full analysis in the honorable mention section above.
What’s the difference between mutual and stock insurance companies?
Mutual companies are owned by policyholders. When the company profits, those profits flow back to you as dividends. Stock companies are owned by shareholders — profits go to Wall Street, not to your policy. Every company on our Top 10 list is a mutual company or fraternal benefit society. If you’re buying whole life for wealth building, mutual is the only structure that aligns the company’s interests with yours.
Can I use whole life insurance as a bank?
Yes — and that’s exactly what it was designed for. When properly structured with a focus on early cash value growth, a dividend-paying whole life policy becomes the foundation for what’s known as the Infinite Banking Concept. You fund the policy, borrow against your cash value for purchases or investments, and repay the loan on your own terms — all while your full cash value continues earning dividends and compounding. It’s the same strategy major corporations and banks have used for over a century. We’ve taken this a step further with Volume-Based Banking, which focuses on maximizing the volume and velocity of capital flowing through your policy.
How do I find the best whole life insurance policy for my situation?
Work with an independent broker — not a captive agent tied to one company. An independent broker can run illustrations from multiple top-rated mutual carriers using your actual age, health classification, and premium budget, then show you side-by-side comparisons of guaranteed and projected performance. That’s the only way to know which company and policy design is actually best for you. Schedule a conversation with our team — we’ll walk you through the process and build a custom comparison at no cost.
Have a question we didn’t answer? Drop it in the comments below — we read and respond to every one. Or if you’d rather talk through your specific situation, schedule a conversation with our team. We’re happy to walk through the details with you.
54 comments
Erika Waldo
I am with New York life and I am not a captive agent, I am independent. So that’s not 100% true that everyone is captive at NYL
Insurance&Estates
Thank you for your feedback. And yes, you are correct, you can write NY Life and not be captive and NY Life agents can write other products besides NY Life.
Steven Johnson
What about State Farm Mutual Life? My policy consistently pays a nice dividend. I recently read literature that State Farm paid $903 Mil in dividends last year.
Insurance&Estates
Hi Steven,
Thank you for the comment. State Farm is a great mutual insurance company and we have nothing negative to say about it. Two things we would point out though are that State Farm is a captive agent company, meaning only State Farm agents can offer State Farm whole life insurance. And the second thing we would mention is that State Farm is not known as one of the top dividend paying whole life insurance companies in terms of the dividend rate paid to policyowners.
All the Best,
Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
carl kielbasa
I own 3 policies, purchased 10 years ago, from Mutual Trust. They were sold to Pan American Life and recently I received notification that they are De-Mutualizing. I cannot get any information from their customer service folks on how this will affect current contracts moving forward; will a dividend be paid annually? My suspicion is that it won’t. However, I am wondering if you had any insight on this? Thank you!
Steven Gibbs
Hello Carl,
It is true that companies can de-mutualize and I think you’re asking a very valid question. However, it would be more appropriate to have a policy review with one of our whole life experts. If you’re interested in this, I suggest that you connect with Barry by explaining your concerns and requesting a call at barry@insuranceandestates.com.
Best,
Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Jeremy
Awfully biases saying Northwestern Mutual is only an honorable mention because of their exclusive distribution. NM pays more in dividends than every other carrier. Just because you aren’t able to offer their policies does not make them inferior… it simply means you have your own biases.
Alison
Totally agree Jeremy. No one came close to payout to the consumers then NWM
6.8 B in 2023 they announced!
Steven Gibbs
Thanks for commenting. One thing to consider is the gross amount of dividends paid can be misleading because the large number of NW Mutual policy holders, just something to note.
Best,
Steve Gibbs for I&E
if you haven’t already connected, I recommend that you connect with our IUL expert Jason Herring by emailing him at jason@insuranceandestates.com. Jason works regularly with Mutual of Omaha as well.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Jack
If you are going to have a fair and non-biased article on this, you as an agent should disclose that DIR can be illustrated without accounting for expenses and mortality. Mass, Penn, and every other company on the list (which you can sell), shows a gross DIR. NM factors in Mortality and expenses before reporting. If you look up any report on actual cash value growth over 20, 30 or 40 years, NM will outperform every time. Objective math, which deserves more than a “mention”.
Steven Gibbs
Hello Jack, thanks for your comment and I have to say that we get at least one passionate response concerning NW Mutual a month. I’m very familiar with NW mutual as my uncle was a top producer there and I had quite a few discussions with him in my youth. In response to your comment, in the battle for dollars, these passionate responses aren’t surprising, especially given NW Mutual’s culture. To be sure, NW Mutual is an outstanding company with a huge track record in the high cash value whole life arena and I respect the history and commitment of the company greatly. With this in mind, your contention is, however, very hard to swallow for a few reasons. First, this isn’t the first time someone has suggested that NW Mutual’s approach to reporting of dividends somehow is a game changer. The last one I heard was concerning NW Mutuals large gross dividend numbers, attempting to make the case that because NW Mutual pays more dividends to policy holders and this equates to policy growth, etc. This contention failed to consider the number of policy holders with NW mutual policies vs smaller mutuals – gross numbers do not tell the entire tale.
What you’re now saying, as far as I understand it, is that NW Mutual is the ONLY mutual company that factors in mortality and costs when illustrating dividends. My first natural question, is how do you know that other mutuals are NOT accounting for mortality and costs in illustrating dividend rates AND, a related question, assuming your contention about NW mutual’s approach is true, are they doing this differently simply due to higher ethical standards, even to the extent of hindering their competitive advantage concerning other mutual WL competitors? My guess is that you may not be able to answer this question; however, I would be interested to hear your feedback in precise detail as to why NW mutual does this differently and also exactly how you’ve determined that NO other mutual WL competitor factors in costs or mortality in illustrating dividends?
Another factor that I think is important is that NW Mutual’s cost is arguably higher than most other mutual WL companies due to the company’s massive budget. Mass Mutual would also be in this camp. My observation is that other top WL mutuals are often leaner and meaner and my belief is that some of this equates to your observation of costs. In summary, I applaud you advocating for high cash value mutual whole life in general as we both would agree it is a powerful asset. And, to reiterate, NW mutual, as we always say, is a top tier company. I’m responding in detail just to encourage more dialogue and draw out any nuggets of truth. I do personally try to avoid grandiose sales hype and, in a world of highly polarized opinions, try to stay with facts only. Thanks again for commenting and I will welcome any further factual feedback.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Insurance&Estates
Being an honorable mention does not mean NW Mutual is inferior. They are a good company and if you have a policy or are a NW Mutual agent, good for you. They certainly are a highly rated life insurance company. And the company may pay out a larger dividend in terms of dollars but the dividend rate is lower than other mutual insurance companies.
Best, Steve Gibbs
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Edwin Manzano
Hello, I’m Edwin, 30 years old and I’m a felon, not sure if that plays a part when it comes to the underwriting of insurance but pretty much I went to prison for armed robbery. I’m working a min. wage job right now. Would you be able to help? Thanks!
SJG
Hello Edwin, we have a sister website actually with an article addressing your situation: ARTICLE LINKED HERE
You can then request a quote on that site if you would like to talk with an agent.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Kyle Cowart
Do you have agents in Arkansas? I have been reading up on the Bank On Yourself approach. Sounds very appealing.
SJG
Hi Kyle, our IBC experts are licensed in all 50 states. If you’re interested in scheduling a conversation, go ahead and email Denise Boisvert at denise@insuranceandestates.com.
Best, Steve Gibbs for I&E
Steven Gibbs is a licensed insurance agent, and the following agent
license numbers of Steven Gibbs are provided as required by state law:
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
stuart dunn
Wow i wished i had been taught this at school
my question is Are these policies only for the USA or can i obtain these in the UK
I’m getting on a bit now but i am interested in the whole life compound interest account
Regards
Stu Dunn
SJG
Hello Stuart and thanks for reaching out. A good next step is to reach out to our IBC expert Denise to request a call at denise@insuranceandestates.com.
Best, Steve Gibbs
Resident License; AZ agent #17508301,
Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
LA agent #769583, MA agent #2049963, MN agent #40563357,
UT agent #655544.
Thomas Crosby
What to offer an whole life with divided to my agents
708 597 8731 x 108
SJG
Hi Thomas, thanks for connecting. The best way to get more concrete feedback is to schedule a zoom call with Barry Brooksby who offers agent training, etc. You can email him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Jason F
Hello, 22 year old here looking towards finding a whole life insurance to treat as an asset to start building my financial portfolio. I am interested in using the insurance as a means of obtaining properties that I can rent out eventually. Is whole life insurance the best option for this, or would something like term life insurance be better? Also should I wait until I get a bit older for this or is the earlier the better?
Insurance&Estates
Hello Jason, thanks for connecting. Term life would offer you no benefits for your stated goal as it does not accrue cash value. You’re on the right track with mutual dividend paying whole life that is properly designed.
To learn more, connect with Denise Boisvert at denise@insuranceandestates.com to request a call.
Best, Steve Gibbs for I&E
Heather strong
Interesting stuff here, I’m 30 years old 2 kids does bad credit affect having life insurance? I started a long term job that will pay well after a bit of time a safety net is a life goal for me during and after if life, Any tips ? Currently in Washington.
Insurance&Estates
Hello Heather, thanks for checking in! Your ideal next step is to chat with our high cash value expert Barry Brooksby, as he can give you more details about the impact of credit and income, etc., though credit alone shouldn’t dramatically impact your obtaining life insurance. You can email him to request a call at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Mike Ramsey
Please recommend a DPWLI company that will write policy for 100k on an almost two year old.
Thank you.
Insurance&Estates
Hello Mike, I forwarded your request to Barry Brooksby and you are welcome to reach out to him directly also at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
André Mangabeira
Hi!
Does all of those companies accept international clients? I’m very interested in IBC and also becoming affiliate to promote this kind of structure in Brazil.
Thanks
Insurance&Estates
Hello Andre’, our IBC Pro is Barry Brooksby and I’ve forwarded your inquiry to him. You can also reach out at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
C.
Hey,
I am about to go with northwestern mutual, but it looks like in your chart of dividends that Mass Mutual did the best? So, do I walk away? I just want to be sure in the company I put my money. I did alot of research and thought northwestern is the best out there. Excuse me for my lack of knowledge, new to this and just want to find best for my money and stick there for life.
Insurance&Estates
Hello, I would encourage you to do a comparison with some other “non-captive” major companies such as Mass and/or Penn Mutual. Northwestern claims to be the best; however, there may be better choices to consider. If you’re interested in comparing, connect with Barry Brooksby at barry@insuranceandestates.com.
Best, Steve Gibbs, for I&E
Clarc King
Great information. I need more information on the benefits of direct recognition vs non-direct recognition.
Thanks,
Clarc King
Insurance&Estates
Hello Clarc, thanks for your comment. I suggest you connect with Barry Brooksby on this issue at barry@insuranceandestates.com.
Best, Steve Gibbs, for I&E
Kevin
I heard one advisor tell a client to pull money out of his cash value life insurance (10pay)to put into the stock market. If you had 400k in cash value and it grew with dividends and a dividend interest rate add in paid up additions. Does that make sense? If you don’t need the death bene fine but the cash value grows at suck a rapid rate after your pay period is over? thoughts?
Insurance&Estates
Hello Kevin, I think you answered your own question. An “advisor” told the client to do this – any conflict there perhaps (even for a fee based advisor)? Highly irresponsible advice in my humble opinion for many reasons including the huge benefit of permanent life insurance AND the tax advantages related to the cash value to name a couple.
Best, Steve Gibbs for I&E
Del
What, is the normal cost of an advisers fee for the structuring of a Personal bank financial strategy?
Thx
Dave
I’m surprised to see you analyzed dividend rates but there seems to be some companies that show a net of fees rate like say a northwestern (universally understood to pay the most dividends) but you have some that show the gross rate, misleading a reader potentially. Any thoughts on that?
Insurance&Estates
Hello Dave, thanks for pointing out that dividend rates can be misleading and thus misused. That of course is not our intent as we are not attempting to promote (sell) a company or policy to someone in our articles but rather providing general information to benefit the consumer. That said, I also think that virtually every aspect of whole life insurance has been targeted and often demonized by the financial industry (i.e. dividend rates) and even among life insurance companies the dividend issue is a hotbed for debate between companies. We will continue to strive to educate the consumer so they can make the most informed decision possible. Those are my thoughts.
Best to you.
Steve Gibbs for I & E
Fran
Am 72 yrs old, in good health, living in CA, how much premium wd buy a $500k coverage of IBC ins. payable in 15 yrs, & which is the best Ins. Co to get in? Tnx for any informative needed response.
LARRY MORTIMER
IS 76 TOO OLD TO START ON THIS WEALTH BUILDING AND DEATH BENEFIT STRATEGY.
ANY SUGGESTIONS OR IS IT TOO LATE.
LARRY
Insurance&Estates
Hello Larry, thank you for your helpful and, yes, common question. IF you’re reasonably health, it is generally never too late to build an effective wealth building and death benefit strategy with permanent life insurance. I forwarded your question to Jason Herring, our product and design expert and he will gladly discuss your concerns and options at your convenience. Please feel free to send him an e-mail message at jason@insuranceandestates.com to schedule an initial conversation.
Best, Steve Gibbs
Matthew D.
Also, shouldn’t the focus be on guaranteed and non-guaranteed growth in cash value rather than dividend rates? Thanks!
Insurance&Estates
Matthew, another solid question. My personal opinion is that dividend rates are instructive as a measure of performance as are the other measures that you noted. That said, there are many theories and opinions about dividend rates and so your question doesn’t lend itself to an easy response. Again, will run this through across our sales team and will follow up with anything definitive.
Best,
Steve
I&E
Matthew D.
What was the actual dividend paid, not what was announced, by the companies listed? I like the post. I worked for Northwestern Mutual and am a policyholder. I remember reading some literature on more than one occasion that Mass Mutual in particular typically announces a higher dividend, but rarely pays it. Do you all have any information on this, or where I could obtain it? Thanks!
Insurance&Estates
Hi Matthew, thanks for your interest and excellent questions. I will run this through our team pipeline and see what the response is.
Best to you.
Steve Gibbs
I&E
Mark Liu
Hi,
I am interested in finding a bank on yourself authorized advisor to have a free personalized solution of a dividend paying whole life policy, who can serve a client in GA.
I would appreciate it if you could help with that.
Regards,
Mark
Insurance&Estates
Hi Mark,
Please look for our reply to the contact information you provided.
Sincerely,
I&E
Burt
I’m a NY resident, probably uninsurable. I’d like to consider DPWLI for my daughter (NY resident) and daughter-in-law (CA resident). Please advise which of your 10 recommendations can write in each of NY and CA. Death benefit is not important. Cash Value is important.
Would prefer policies allowing me to pay in first year for minimum number of years to have the policy fully paid-up. Your advice will be appreciated.
Insurance&Estates
Burt,
Some policies allow for a 7-Pay period, focused on cash value growth. It simply depends on the carrier and how the policy is structured.
We will send a reply email to the contact you provided.
Sincerely,
I&E
Mark
Are you able to write for all 10 companies?
Insurance&Estates
Mark,
The information in our Rankings is provided strictly as a source of information for our visitors and is provided merely as a convenience. It represents our opinion and analysis based on subjective and objective criteria.
Some of the companies require you to be a captive agent. For example, we cannot write Northwestern Mutual. Other companies have a minimum threshold that must be reached before they allow a non-captive agent to write a policy with them.
Having said that, we can write for the majority of the companies listed.
Sincerely,
I&E
Bob Cunningham
I’m looking to utilize my blog to teach a combination of sound personal finance principles, geared toward young adults/families, with the advanced strategy of using DPWLI as the primary wealth-builder. How can I best get the word out, and potentially become an affiliate resource. Currently, I am indirectly affiliated only with Lafayette Life.
Insurance&Estates
Hi Bob, its great to hear that you’re doing this and we’re excited that you contacted us because education is a huge part of our mission. I would love to talk more with you about exploring an affiliate relationship that would be mutually beneficial. We are contracted with a number of great companies that support a personal banking type approach. Go ahead and e-mail us with a good contact phone number and I’ll reach out to you. Thank you. Steve Gibbs, Esq.
William
What was Assurity life’s dividend rate?