PARTICIPATING WHOLE LIFE
If a policy is ‘participating’, the policyholder is eligible to participate in the surplus of the insurance company through dividends. The amount of the dividends is not guaranteed. It is calculated annually and is based on several factors including interest rates, mortality, expenses and taxes.
In a low interest rate environment where guarantees are scare, a ‘participating’ policy provides stable investment options while offering tax-sheltered growth.
Also known as Ordinary or Permanent life insurance, the policy remains in effect while premiums are paid or the policy becomes paid up.
Whole Life policies provide a death benefit and an accumulating cash value. By definition, it has a fixed premium and a level death benefit to age 100. Whole life is generally among the most expensive types of life insurance, initially. The premiums remain level and don’t increase with age, this averages the cost of the policy over your lifetime. The policy cash value increases over time.
A cash surrender value is guaranteed providing you the ability to borrow against the cash value of your policy. You can select the plan and features that best meet your insurance and savings goals.
Contact Sukhinder S Gill today for a quote or to arrange a review of your insurance needs.