If dividend option choices are offered on a whole life insurance policy, what must the policy contain?

When a whole life insurance policy offers dividend options, it is essential for the policy to contain a statement that dividends are NOT guaranteed. This is important because dividends in whole life insurance are not promised; they depend on the insurer's financial performance, claims experience, and other factors that can vary from year to year.

By including a statement that dividends are not guaranteed, the insurer ensures that policyholders have a clear understanding that while dividends may be declared, there is no certainty that they will be paid or that they will remain at a consistent level. This transparency is crucial to prevent potential misunderstandings about the benefits one can expect from the policy.

The other options discuss elements that could be relevant to a policy's dividend structure, but they do not pertain to the necessity of expressing the non-guaranteed nature of dividends, which is a key consumer protection measure in insurance policies. Thus, having a clear statement about the non-guaranteed dividends helps policyholders make informed decisions regarding their coverage and financial expectations.