What type of whole life insurance policy uses dividends to enhance the death benefit?

The type of whole life insurance policy that uses dividends to enhance the death benefit is the Enhanced whole life insurance policy. This type of policy not only provides a guaranteed death benefit but also allows for the payment of dividends, which can be applied to increase the death benefit over time.

In an Enhanced whole life policy, policyholders can use dividends in several ways, including purchasing additional paid-up insurance, reducing premiums, or accumulating cash value. This differs from other types of whole life policies, which may not necessarily involve the utilization of dividends to boost the death benefit directly.

As a result, Enhanced whole life insurance stands out for its ability to grow the death benefit in a way that traditional options do not, making it a preferred choice for those who value the potential for increased financial protection through dividends.