Whole life insurance provides a savings benefit

What is Whole Life Insurance?

In a participating policy, the insurance company shares the excess profits called dividends with the policyholder. Typically these dividends are not taxable because they are considered an overcharge of premium. The greater the overcharge by the company, the greater the refund/dividend. For a mutual life insurance company, participation also implies a degree of ownership of the mutuality.

Who does Participating Insurance Suit Best?

At least 2 factors impact suitability. They are age and budget. Typically, the earlier you apply for permanent insurance the lower the price. You’ll want to have this coverage in place permanently, but may not want to keep paying forever. As a rule of thumb we suggest younger than 5 or older than 55. You may want to consider converting some of your existing Term insurance to Permanent Policy if this is an option on your existing policy.

How do I pay for Permanent Insurance?

Generally, you pay into a permanent plan for 20 years to life, and while you pay, you may earn dividends which may purchase additional insurance, create a cash value or even make the payments for you. This is known as "premium flexibility". Ready to speak with an adviser, get a quote or simply need someone to answer a question?

Contact Us and a licensed life agent serving Concord will take time to ensure you clearly understand all your options.

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Insurance Glossary

Group Registered Retirement Savings Plan (GRRSP): An arrangement established for employees or members of a professional or trade association. Individual RRSP contracts must be registered for each participant and separate accounts kept for each. Employer contributions are treated as employees’ earned income for income tax purposes.



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