Hello, my name is Vic Schumacher, the company
is HPE Financial Services. The question today is how do you use dividends in a life insurance
policy. Well, the dividends in the policy itself should be reinvested back in to the
policy. You can, based upon the time line of that particular policy, with draw those
dividends, and many people in retirement do so. They keep the principal there and they
live off the dividends. All you have to do is contact the insurance company and request
that those dividends be sent to you on a regular basis. The real question though, with the
dividends, is how much will they be? Your premiums have been invested with the insurance
company, and that insurance company has now made particular investments in to different
companies, mutual funds, stocks, bonds, things of this nature. How secure or those dividends
is an important factor, and what is the purpose of those dividends is another important factor.
If you really want to cash out the dividends, you can, but if that’s the purpose of the
policy, that’s one thought. The other thought is the dividends, if we leave them in there,
the policy will grow and have a better cash value, which is the true purpose of that whole
policy, maybe to start with. My name is Vic Schumacher, the company is HPE Financial Services,
helping people every day.