Participating Life Insurance
Permanent coverage with potential dividends, often used to grow long-term value and support legacy planning.
What it does
Participating life insurance is permanent coverage with guaranteed values and the potential for dividends, often used for long-term planning, tax-efficient growth, and legacy goals.
Provides for
- Long-term wealth and estate planning strategies
- A growing legacy for family or charity
- Clients who like stable, tax-efficient growth
Why clients choose it
- Lifetime coverage with guaranteed values
- Potential dividends to enhance long-term value
- Flexible ways to use dividends over time
How participating life insurance works
Participating life insurance (often called “par whole life”) combines permanent life insurance with a participating account. Dividends are not guaranteed, and are declared annually by the insurance company.
Eligible policyholders receive a share of the company's surplus by way of a dividend.
Common dividend uses
- Paid-up additions (increase coverage)
- Premium reduction
- Accumulation left on deposit to earn interest
- Cash
Why it’s different from term
- Coverage is designed to last for life
- Builds guaranteed cash value
- Dividends can enhance long-term value