When discussing dividends in life insurance, what is a necessary point to mention?

When discussing dividends in life insurance, mentioning that they are not guaranteed is crucial. This point emphasizes that dividends are based on the insurer's financial performance, mortality rates, investment returns, and other factors. Since dividends can vary from year to year, policyholders should understand that there is no assurance they will receive a certain amount or even any dividends at all. This uncertainty helps set realistic expectations for policyholders and highlights the importance of reviewing their insurance policy regularly to understand how its performance might change over time.

The other options, while relevant to the broader conversation about life insurance dividends, do not address the fundamental nature of dividends’ uncertainty as effectively. For instance, past dividends or anticipated dividends can provide context, but they don't convey the inherent lack of guarantees associated with dividends in life insurance policies. Additionally, the relationship to the policy cost, while informative in terms of overall financial planning, is secondary to understanding that dividend payments are contingent upon the insurer’s actual performance.