Setting Our Dividend Scale

Dividend Scale

How we calculate dividends

We are changing the policy dividend scale for all “closed block” participating policies purchased before the June 2001 demutualization of Phoenix Life Insurance Company (now Nassau Life Insurance Company), effective January 1, 2021. The 2021 dividend scale will incorporate a dividend interest rate reduction of 0.20% (20 bps) across all products, which we are making in response to the current low interest rate environment.

As a result, most policyholders will see a decrease to the dividend paid in 2021 compared to the dividend paid in 2020. In some cases, growth in the value of their policy may offset the decrease.

As always, the amount of dividend paid is based on a number of factors including product type, age at issue, length of time the policy has been in force, gender, and health when the policy was issued. Some policyholders with direct recognition loan methods will also see a change as their dividends are further adjusted based on their loan balance and the spread between their loan rate and their specific dividend interest rate. In addition, a policy’s 2021 dividend will be at least equal to 75% of the 2020 dividend, prior to loan adjustments.

The dividend scale for the small number of participating policies in the “open block” (purchased after demutualization) also will be changed for 2021.

Please note that when we changed the name of Phoenix Life Insurance Company to Nassau Life Insurance Company, the company name is the only thing that changed. All policy terms, including terms and conditions for dividend-eligible policies, remain the same, and the closed block continues to be managed in accordance with the original Plan of Demutualization.

If you have any questions about your policy, please contact our Customer Care Center at 1-800-628-1936.