Non-participating policy
No dividends, no surprises — you trade upside for predictability.
A life insurance policy that pays no dividends — its values are fixed and guaranteed rather than shared from the insurer's experience.
Certainty over participation
A non-participating (or 'non-par') policy does not share in the insurer's financial results and therefore pays no dividends. Its premiums, death benefit, and any cash values are set and guaranteed at the outset. What you see in the contract is what you get — there is no non-guaranteed projection layered on top.
This is the mirror image of a participating policy, which can pay dividends when the insurer's investment, mortality, and expense experience is favourable. Non-par typically costs less up front than a comparable par policy, because you are not paying for the potential dividend upside.
Who it suits
Non-par appeals to people who value simplicity and predictability and who would rather not depend on a dividend scale that can change. If you want to know exactly what you will pay and what will be paid out, without evaluating optimistic and conservative projection columns, a non-par structure removes that complexity.
The trade-off is giving up the potential for dividends to grow coverage and cash value over time. Neither par nor non-par is universally better; the right choice depends on whether you prioritize certainty and lower cost, or participation and long-term accumulation. A licensed advisor can compare the two against your goals.
Common questions
Is a non-participating policy cheaper than a participating one?
Usually, yes, up front — you're not paying for the potential dividend upside, so premiums tend to be lower. In exchange you give up the chance for dividends to grow your coverage and cash value over time. It's a certainty-versus-participation trade-off.
Does a non-participating policy build cash value?
It can, depending on the product — but any cash values are fixed and guaranteed rather than boosted by dividends. Some non-par permanent products build guaranteed cash value; others, like Term-100, build little or none.