How Do You Spell PARTICIPATING POLICY?

1. A participating policy refer to an insurance policy, typically life insurance, that allows the policyholder to receive dividends or share of profits from the insurance company's investments. This type of policy is also known as a "with-profits policy."

   In a participating policy, the policyholder becomes a participant in the earnings and financial performance of the insurance company. As the insurance company invests the policyholder's premiums, it generates profits. These profits are then allocated back to the policyholders in the form of dividends, which can be received regularly or accumulated over time.

   The dividends received by participating policyholders are typically influenced by the performance of the insurance company, its investment portfolio, and the overall profitability of the insurance business. The dividends can be utilized in several ways, such as receiving them as cash payments, using them to reduce premium payments, or reinvesting them to accumulate further earnings.

   Participating policies aim to provide additional benefits and incentives to policyholders, as they share in the financial success of the insurance company. These policies can help policyholders offset the impact of inflation, as the dividends received may help to increase the policy's value or death benefit over time.

   To summarize, a participating policy is an insurance policy that allows policyholders to receive dividends or share in the profits generated by the insurance company's investments, providing additional benefits and potential growth to the policy.

2. One which shares in the profits of the company, in accordance with the previous agreement, its face value being thereby increased without any increase in the amount of the premium.

   A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.

Common Misspellings for PARTICIPATING POLICY

The term "participating policy" originated in the insurance industry. Here is the etymology of each component of the word:

1. Participate: The word "participate" comes from the Latin word "participare", which means "to take part in" or "to share". The term evolved into "participate" in Middle English and has remained relatively unchanged in its meaning.

2. Policy: The word "policy" has its roots in several different languages. The most significant influence comes from the Latin word "politicus", which means "civil affairs" or "public administration". It entered Middle English through Old French as "police", which originally referred to the administration of a city or state. Over time, the term expanded to include rules and regulations created by organizations and governments.