The board of Massachusetts Mutual Life Insurance Company has agreed to have the company pay policyholders about $1.2 billion in dividends in 2011.

MassMutual, Springfield, Mass., says the anticipated rate for new, eligible participating life insurance policies will be 6.85%.

In November 2009, the MassMutual board said that the 2010 dividend rate would be 7% and that the company would pay about $1.2 billion in dividends in 2010.

- Allison Bell