When you purchase whole life insurance from a mutual life insurance company you become a policyholder, which means you may be entitled to the added benefit of an annual dividend.
A dividend is the amount of money returned to policyholders after the company evaluates its financial health in three key areas: 
Investments — or how the company manages its assets
Claims — the amount of death benefit it pays out.
And finally, operating expenses — or how prudently the company manages its day-to-day operations.
The amount of dividend you receive is determined in large part by these three components. Insurance companies’ dividends can vary and, in the case of stock companies the needs of stockholders
can take priority over delivering a dividend to policyholders.
Such focus on the short-term demands of stockholders can conflict with the long-term vision of a company and the interest of its policyholders.
In a mutual company, the dividend reflects responsible and careful management of investments, claims and expenses and its ability to weather market fluctuations.
The dividend is also an indicator of the company’s financial strength and stability reflecting its mission to put policyholders first.
Guardian is a mutual company. And although dividends are not guaranteed putting our policyholders first has enabled us to pay a dividend each year for over 160 years, through world wars, economic depressions and uncertain times. We are focused on making the responsible decisions that are necessary to meet our commitment to you and deliver on the promise you made to your loved ones, when they need it most. To learn more about whether whole life insurance is right for you and the value of working with a mutual company, contact your financial representative.