How is my annual dividend applied?
The following is a brief explanation of the dividend options currently in use for Centrian Life Insurance policies.
Please note: All dividend options are shown for informational purposes only. Some of the options shown are available only on certain kinds of insurance policies and may not be available on a new Centrian Life Insurance policy.
Dividend Options
Option #1. Paid in cash (check). Mailed to the policyowner on the anniversary date.
Option #2. Used to reduce the premium due. Any excess dividend is applied under Options 1, 3, or 4.
Option #3. Used to purchase paid-up additional permanent insurance. The dividend for a given year "purchases" an amount of insurance ("Additions"). This amount is added to any previous balance of Additions to provide a new balance. (Dividend Additions have a cash value separate from the policy cash value.) This is not available on Term policies.
Option #4. Left to accumulate at interest. The rate of interest applied will be the current rate in effect on the policy anniversary. Interest is paid only on the policy anniversary. If previously accumulated dividend values are withdrawn at any time during the policy year, no interest will be paid for amounts so withdrawn.
Interest earned on these dividends are taxable. IRS regulations require that we withhold certain amounts if we do not have your Social Security number.
Option #5. Used to purchase One Year additional term insurance. The amount of term additions purchased is determined by the amount of the dividends and the age of the insured at the time of the dividend payment and may be limited by the provisions of the policy or dividend rider. If such limit is reached, any excess dividends will be applied as provided in your policy. (No longer available for adding to existing policies or selecting on new policies).
Option #6. Used to purchase a combination of #3 and #5 above. (Available only on certain policies.) Not available to elect on existing policies or on new policies.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top
What dividend options are available on my policy?
If you have a Whole Life Insurance policy (policy that builds cash value), you can elect any of the following dividend options:
#1, #2, #3, #4
If you have a Term Insurance policy (policy that provides life insurance coverage only - no cash value), you can elect any of the following dividend options:
#1, #2, #4
Descriptions of dividend options are detailed in the answer listed above this FAQ, which is:
How is my annual dividend applied?
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top
When can I change my dividend option?
The dividend option on your Centrian Life policy can be changed at any time. However, the new option will not be effective until the next policy anniversary.
Please note: Policy dividends are updated 30 days in advance of the policy anniversary date and premium notices/anniversary statements are mailed at that time. If the dividend option on your policy is changed after the policy has been updated with the current dividend, the premium notice/anniversary statement for the current year will change based on the newly elected dividend option.
If you wish to change your dividend option, simply contact our Call Center and it can be changed upon the policyowner's request. Otherwise, complete the required Dividend Option Change Request form. This form must be completed by the policyowner and returned to this office for processing.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top
How is my annual dividend determined?
Dividends are determined by the kind of policy, amount of coverage, insured's age at issue, policy issue date, and issuing bank. In some instances you may have numerous Centrian Life policies that are identical in coverage and issue dates but the dividend values are different. This is due to the fact that the policies were issued through different banks who each set an individual rate of return.
Payments of annual dividends on any Centrian Life policy are not guaranteed.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top
Why doesn't my policy receive dividends? I had to elect a dividend option on my application.
Although all Centrian Life policies are eligible to participate in dividend distributions, dividends paid are based on the financial experience for that particular kind of policy. Some policies may take longer to earn dividends than others. Although your policy may not be currently earning dividends, the selection of a dividend option was required so that we would be able to apply any possible future dividends properly.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top
Can I withdraw my dividends?
Depending on the policy type and current dividend option, dividends may be available for withdrawal at any time.
Dividends may be:
- Used toward payment of premiums.
- Used toward loan repayment.
- Applied to pay the premium or loan on another Centrian Life policy. (Both policies must have the same ownership.)
- Withdrawn (in total or partial withdrawal may be chosen).
Note: If your request is received in our office within 30 days prior to the policy anniversary, unless you specifically request otherwise, we will hold your request until the anniversary date to avoid any loss of interest that would have been earned.
If you wish to withdraw dividends, simply contact our Call Center and a representative can process your request.
IF YOU HAVE DIVIDEND OPTION #5 OR #6, PLEASE CONTACT OUR CALL CENTER.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
> Back to Top