Have you considered taking advantage of the Participating Whole Life Insurance at some point in your life? If not, it might be the ideal time to do so. After all, a Participating Whole Life Insurance offer tax-free growth while you are alive and a tax-free lump-sum payment to your beneficiaries in the event of your untimely demise.
Just as a quick reminder, a Participating Whole Life Insurance is a type of permanent life insurance that provides guaranteed lifetime coverage as long as you pay the policy premiums. The premiums will never change during the entirety of the premium paying period. Even if you age or experience health problems, you can rest in knowing that your costs to maintain the policy will be the same.
Aside from its insurance protection benefits, it also boasts a tax-advantaged investment component that can help you build a larger estate than is the case with a taxable account. The accumulating cash value in your policy grows free of annual taxation.
When you decide to take advantage of the Participating Whole Life Insurance policy, the death benefit and any pai-up additions are distributed tax free to named beneficiaries, thereby bolstering your estate. Moreover, you can access the accumulated cash value of your policy at any given time you deem appropriate.
Keep in mind dividends are used to purchase additional paid-up insurance in your Participating Whole Life Insurance policy. For this reason, they form a new accumulated cash value that is guaranteed and can never be reduced, unless initiated by you, the policy owner. In short, you benefit from annual vesting when leveraging Participating Whole Life Insurance.
The Bottom Line
There is more to Participating Whole Life Insurance than merely what is included in this simple guide. No wonder you should take it upon yourself to learn more about this permanent life insurance policy before trying it out.
Luckily, you can always work with experienced investment professionals who are more than committed to maintaining asset quality, effective diversification and strict adherence to risk management to avoid the hassle.
