What is the typical feature of non-participating whole life policies?

Non-participating whole life policies are characterized by the fact that they do not pay dividends to policyholders. This means that the policyholder will not receive any share of the insurer's profits, unlike participating policies, which do distribute dividends and may offer additional financial benefits beyond the base death benefit.

The lack of dividends is a significant aspect because it simplifies the expectations around the policy's performance. Policyholders of non-participating whole life insurance can anticipate a stable, predictable cash value accumulation and death benefit but without the variability that can come with dividends from participating policies. This makes non-participating policies generally lower in cost compared to their participating counterparts, as they do not account for potential dividend payouts that would need to be funded.

The other features associated with non-participating whole life policies, like the flexibility of premium payments or cash value accumulation, may not be inherently linked to the non-participating nature of the policy. Understanding the unique feature of not paying dividends helps policyholders make informed choices based on their financial planning needs.