At a high level, participating life insurance is distinguished by these key features.
First and foremost, it’s life insurance.
When you die, your family, business or charity receives the payout.
It’s guaranteed to stay in force your whole lifetime, if you make the required payments.
It builds up a cash value you can use during your lifetime.
Your policy has a cash value that’s guaranteed to grow over time. You can use your policy’s cash value in many ways during your lifetime.
It has tax benefits.
Your policy’s cash value grows tax-free while inside the policy, subject to government limits. When you die, the people and organizations you’ve named receive the payout tax-free.
It can give you dividends.
You can use dividends in one of several ways. You can increase your coverage and your policy’s cash value. You can decrease your payments or stop them. Or you can take your dividends as cash.
To find out more, please download the Participating Life Insurance brochure.