Which item is not guaranteed during a sales presentation for a participating life insurance policy?

• A. Cash Value Growth
• B. Death Benefit
• C. Policy Loans
• D. Dividends

Answer: (D)

Dividends are not guaranteed in a participating life policy. While the death benefit, the cash value (with its minimum guaranteed growth), and the policy loan feature are contractually guaranteed as part of the policy's terms, dividends come from the insurer’s excess profits and can vary from year to year. They depend on the company’s experience and financial performance, so a salesperson cannot promise a specific dividend. That uncertainty is what makes dividends the item not guaranteed. The other features—death benefit, guaranteed cash value growth, and the ability to borrow against cash value—are contractual guarantees, provided premiums are paid and the policy remains in force.