- 15,041
You are talking in circles. I am not stating what you accuse me of, I am simply saying ultimately any excess payments beyond the costs of insurance is similarly a dividend - since it's always made up of excess premium. What is so hard to understand? And regarding policy holder vs. shareholder thing - you know the answer?
You either do not really understand what you are talking about, or can't communicate it. These terms have precise definitions for a reason, don't confuse them.
A WL premium, whether par or non-par, is just that, its premium. None of it is excess, send the company only a portion of the premium and see what happens to the policy. A dividend is classified by tax code as a return of excess premium for a reason. It allows a dividend to be paid without generating a taxable event, a very nice thing.
Now, it can be argued that a dividend is really more than just excess premium, particularly when the dividend greatly exceeds the paid premium. But that is a completely different discussion.