Participating Life Insurance

Participating Life Insurance

Participating insurance is a good life insurance option for those who want permanent coverage with a tax-deferred investment, but prefer to leave the responsibility of managing those investments to the experts.

Participating life insurance, or Participating Whole Life insurance is essentially a whole life policy with the added benefit of an investment in the form of dividends. Policyholder dividends allow you to share in the profitability of the insurance company, which you can use to reduce premiums, purchase more coverage, or accumulate as additional cash value.

Benefits You Get from Participating Life Insurance

Even if estate planning isn’t your central focus, Participating Life insurance is a practical option, as it increases your coverage, thus enabling you to leave more to your family or keep pace with ever-growing inflation.

The following are some of the ways you and your family could benefit from a participating life insurance policy:

  • Lifetime protection: Coverage lasts a lifetime, as long as you continue paying your premiums.
  • Guaranteed death benefits Guaranteed tax-free benefits for your beneficiary.
  • Guaranteed cash value: Tax-advantaged cash value that you can use while you’re alive, or pass on to your beneficiary.
  • Guaranteed premiums: Fixed premiums that don’t fluctuate over time.
  • Annual policyholder dividends: Potential dividends (not guaranteed) that fluctuate according to insurance company performance.

Is Participating Life Insurance Right For You?

If you’re looking for permanent coverage, and are able to commit to a larger amount of premium for a reduced period of time, e.g., prepaying the insurance in a 8-20 year period, a Participating Life insurance policy may be a good fit for you. Other good candidates for a Participating policy are those looking to invest corporately held money in a tax deferred investment vehicle.

Participating Life & Other Permanent Life Insurance Compared
 WholeParticipatingUniversalTerm 100
Lifetime CoverageYesYesYesYes
Guaranteed PremiumsYesYesNo – Can increase or decrease to suit your budgetYes
Savings ComponentYesYes – Dividend is based on the insurance company’s performanceYes – Investment portfolio is customizableNo
Cash ValueYesYesYesNo
 Learn more Learn moreLearn more

We Can Help!

If you’re unsure whether participating life insurance is an ideal coverage for you, don’t hesitate to speak with one our representatives for guidance. For a free consultation, visit our office or call us Now!


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