The Guardian Life Insurance Company of America has announced its plan to pay $776 million in dividends to its participating life insurance policyholders.
The $776 million dollar payout is a decline from last year's $805 million total payout.
But what does this mean for the dividend interest rate?
In what looks to be the most dramatic shift in dividends among the major whole life carriers, Guardian's dividend interest rate will drop to 6.25%. The company's announcement obviously lacked an optimistic tone about this news.
We're sure Guardian isn't thrilled with the news (and neither are we in all honesty) but this is great time to mention that dividends do move around year to year with many companies and everyone has good and bad years.
So while the news out of Guardian isn't incredibly positive this year, we're sure whatever drove the numbers down is a high priority to address for next year.
Brandon launched the Insurance Pro Blog in July of 2011 as a project to de-mystify the life insurance industry. Brandon was born in Northern New England, and he currently calls VT home. He attended Syracuse University and graduated with a triple major in Economics, Public Administration, and Political Science.