Participating and non-participating refer to whether or not an insurance company pays dividends to policyholders. If your insurance company is referred to as a mutual insurance company, then it does pay benefits to policy holders, and is therefore participating. If your insurance company doesn't pay dividends to policy holders, then its non-participating. Dividends change from year to year depending on the performance of the company. You can receive a dividend in check form sent directly to you, or you can have your dividend used as payment for your premiums. You can also use the dividend to purchase more insurance. Consult an insurance agent in your area for more information about participating or non-participating insurance companies.
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