A participating whole life policy may pay dividends from all of the following EXCEPT

Excess mortality savings refer to the amount saved when actual death claims are lower than expected. Since participating whole life policies are designed to share surplus profits with policyholders, excess mortality savings can directly contribute to dividend payouts, making this option a valid source of dividends.

Excess interest earnings occur when the insurer earns more on its investments than anticipated. This additional income can be distributed to policyholders as dividends, aligning with the nature of participating policies that offer a share in the company's financial successes. Therefore, this is also a legitimate source of dividends.

Excess expense savings arise when the costs of administering the policy are lower than projected. Similar to mortality and interest savings, any such savings can enhance the overall profitability of the policy and lead to higher dividends for policyholders, confirming its validity as a dividend source.