Who should choose participating whole life insurance?
If you’re a parent, grandparent, professional or business owner, participating whole life can be particularly advantageous for you.
Here’s why:
Parents and grandparents
The quick pay options over 5 years or 10 years allow you to pay off all the premiums before gifting the policy to your children and grandchildren when they reach the age of majority.2
Professionals
Participating whole life insurance is a flexible product with a guaranteed premium and the potential to grow the policy values over time. This can be appealing to professionals who want to enhance their retirement income or access funds for future projects.
Business owners
Participating whole life insurance is a useful tool for managing specific risks related to:
- Losing a key person
- Minimizing the tax impact on passive investment income
- Providing additional cash flow for various projects and for retirement
2 The insured child or grandchild or their parent should be named as the contingent policyowner (not just an heir) to avoid a taxable disposition of the policy upon transfer of ownership on death. There must be only one insured on the policy at the time of transfer of ownership to avoid a tax disposition. Please consult your tax advisor.