Compensation Glossary

One-year Level Term

This life insurance dividend option is also known as the 5th dividend option. This option uses any distributed dividends to pay for a one-year term policy equal to the guaranteed cash value. This option is often selected when a policy owner has an outstanding loan on their policy. Any excess dividend is used to buy paid-up additions, accumulate at interest, gets paid in cash, or it can be used to pay the loan down.