Dividends paid for part of the year in which the policyholder dies are typically referred to as "pro-rated dividends." These dividends are calculated based on the period the policy was in force before the policyholder's death, reflecting the company's performance and profitability during that time. The pro-rated amount is usually paid to the beneficiaries or the estate of the deceased policyholder. The exact calculation can vary based on the insurance policy's terms and the company's dividend declaration practices.
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