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Goodwill is summarized as follows: 

## CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES 

## Notes to Consolidated Financial Statements, Continued 

<img src='content_image/1049543.jpg'>

## Participating Policies 

At December 31, 2018 and 2017, participating business approximated 62.5% of direct life insurance in force. 

Future policy benefits on participating policies are estimated based on net level premium reserves for death and endowment policy benefits with interest rates ranging from 3.2% to 9.0%, and the cash surrender values described in such contracts. The scaling rate used for the 2018 portfolio ranged between 3.59% for 1 year and then going up to 4.86% over 13 years and remaining there for the duration. Earnings and dividends on participating policies are allocated based on policies in force. 

Policyholder dividends are determined based on the discretion of the Board of the policy issuing subsidiary. Policyholder dividends are accrued over the premium paying periods of the insurance contract. 

