Montpelier, VT (November 22, 2016) - The Directors of National Life have approved an estimated payment of $67 million in dividends to eligible participating policyholders in 2017.
"This payout is evidence of our financial strength,” said Mehran Assadi, president and chief executive officer of National Life Group.
Mutual companies are not publicly traded; they are owned by policyholders, who reap the benefit of profits above and beyond a company's expenses and reserves necessary to finance future benefits.
"Dividends paid to policyholders are one of the benefits of our mutual structure." said Assadi.
"We have been paying dividends since 1855 when, after its first five years of operation, National Life Insurance Company had a balance to distribute through dividends of $11,260." he said. "We have come a long way since then, but one constant has been the payment of dividends."
For policies bought after January 1, 1999 the rate for all participating (whole life) business will be unchanged from the 2016 dividend scale. For policies bought before January 1, 1999 the dividend rate will be decreased slightly to reflect a reduction in investment income due to low interest rates.
The Board of Directors approved the dividend payments at a meeting on November 11, 2016.
About National Life
At National Life, our story is simple: For more than 167 years we’ve worked hard to deliver on our promises to millions of people with our vision of providing peace of mind in times of need. It’s our cause, stemming from a deep passion to live our values to do good, be good and make good, every day. Learn more at National Life.
For more information, contact Ross Sneyd, corporate communications, National Life Group, 802.229.3866
National Life Group® is a trade name of National Life Insurance Company, Montpelier, Vt., Life Insurance Company of the Southwest, Addison, Texas, and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York. Equity Services, Inc., Member FINRA/SIPC, is a Broker/Dealer and Registered Investment Adviser affiliate of National Life Insurance Company. All other entities are independent of Equity Services, Inc.