MassMutual announced its plan to pay $1.49 billion in dividends to participating policy holders in 2014. This will be the largest total dividend payout the company has made in its 162 year history.
We all know the total payout doesn't mean much to the individual policy holder. We all want to know what that means the effective dividend interest rate will be.
And the answer is…
It went up to 7.1%!
Despite economic times that have caused many insurers to cut benefits to policy holders, the Blue Chip Company has managed to increase the benefits it pays to policy holders, and we tip our hats to that.
The company sighted improvements in both the general account investment performance and mortality experience, as well as very favorable performance from other subsidiary holdings, as the ability to raise next year's dividend payout.
Congratulations to MassMutual on a good year.