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Consumer Comparisons of Life Insurance Costs

The second step in calculation of the net payment cost index is: Calculate the future value of an ordinary annuity of an amount equal to the projected annual dividend (if any), compounded at 5% for 20 years. An ordinary annuity is used because dividend payments are made at the end of the period.

What is the projected annual dividend? Does a life policy pay any dividend annually?

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A participating policy will pay dividends. It must be specified in the contract.

“Mmmmmm, something…” - H. Simpson

This are dividends for the insurance company and not charged to the insured, right? 

Las almas de todos los hombres son inmortales, pero las almas de los justos son inmortales y divinas.