Which insurance feature helps to share in the earnings of the insurer?

The correct answer is that participating policies feature helps policyholders share in the earnings of the insurer. These policies are designed to pay dividends to policyholders based on the insurer's financial performance, which includes factors like returns on investments and claim experience. Unlike other types of insurance, such as term or group insurance, participating policies allow individuals to receive a portion of the insurer's profits when the company performs well.

In participating policies, the dividends can be used in various ways, such as reducing premium payments, purchasing additional insurance coverage, or being taken as cash. This characteristic of sharing in the insurer's earnings aligns with the mutual insurance model, where policyholders are effectively owners of the insurance company. Understanding this distinction is important for clients considering different types of life insurance products, as it influences both potential returns and how premiums are viewed over the life of the policy.