Paul Lalonde, President and Advisor at Twin Power Financial Inc, joins LSM Insurance again! This time, he is sharing his knowledge on Participating Whole Life Policies and what they have to offer.
Participating Whole Life is a great contract where you actually get to participate in some of the profits of the insurance company. Now, these profits are paid back in the form of dividends and while not guaranteed, they have an amazing track record.
Now, these dividends can be used for several different things. The most common use it to buy paid up additions and this is when the dividends go inside the policy and attack sheltered bases, essentially increasing your insurance. This can add up to quite significant increases over time. You can also use the dividend to be paid out in cash, reduce your premium, or to put aside in a separate account that will earn interest for you.
Participating Whole Life policies offer a vast amount of flexibility and can be a great value in the long run. They do, however, tend to be slightly more expensive than non participating policies where you don’t get any dividends, but in a lot of cases, can end up being of greater value.
This is more or less the premise of Participating Whole Life Insurance. If you are unsure about what works best for you, speak to a licensed Insurance Provider; they will help you determine what policy is most suitable for your needs and your situation.
More questions? Find out more about Participating Life Insurance here
