Knowing you need insurance is an important first step on your road to a secure financial future. Knowing what kind of insurance is right for you is the next step.
Whole Life Policies provide permanent lifetime protection that has guaranteed cash values, the opportunity to earn annual dividends and the potential to increase plan values by making additional deposits on a tax-deferred basis. Whole Life Policies are about much more than life insurance protection – it can also be a powerful tool to help you reach your long-term financial goals.
Understanding participating whole life insurance
Whole Life Policies provide lifetime protection for a level premium. While the cost of insuring people increases from year to year as they get older, Whole Life Policies spread this cost over the lifetime of the policy, the greater the opportunity you have to build up funds as a cash value.
Whole Life Policies, like many life insurance plans, is given preferred tax treatment. Cash values within the plan accumulate on a tax-deferred basis. This provides the potential for a higher rate of return than that of traditional savings vehicles, such as savings accounts and GIC's, on which interest is taxed annually.
The amount you pay for Whole Life Policies is based on estimates of many factors, such as the expected return on investments, operating expenses and the cost of paying out death benefits.
When you pay your insurance premiums, we put your money into a participating account. This account is managed exclusively for participating policy owners by the insurance company.
Dividend scales are not guaranteed and will increase or decrease based on a number of factors, some of which include the return on investments, operating expenses and the cost of paying out death benefits.
B. Kirk McNamee, CFP