A nonparticipating policy will:

A nonparticipating policy is one that does not share in the insurer’s profits, meaning it does not pay dividends to policyholders. This is a key feature that differentiates nonparticipating policies from participating ones, which do pay dividends to policyholders based on the insurance company's performance and surplus.

The core characteristic of a nonparticipating policy is that it offers more predictable, stable premiums without the additional benefits of profit-sharing. This can appeal to consumers who prefer a straightforward policy without the expectation or dependency on dividends.

In this context, acknowledging the nature of nonparticipating policies helps clarify why the concept of accumulating cash value or being issued without underwriting does not apply to them in the same way. Nonparticipating policies may still have some features like cash value, but this doesn’t alter the fact that they won’t provide dividends.