Participating insurance works well for people who have a long-term focus and for people who would rather have the investment component of their policy actively managed by investment professionals. Also, the investment mix is long-term in focus and lower risk than policies which utilize a significant portion of investments in equity-linked accounts. It is primarily invested in high quality bonds and mortgages. The long-term focus and high quality of the assets results in a relatively stable return over the long run.
This type of insurance typically has a guaranteed basic premium, guaranteed basic coverage and guaranteed cash values.
The initial premium for participating insurance is generally higher than for similar plans that don’t offer dividends, but the net cost after receiving dividends is expected to be lower over the long term. There are a variety of ways to use the dividends. For example, dividends can be paid in cash or can be used to buy additional insurance on a tax-advantage basis.
Speak with a Qualified Professional today to help choose the right Participating Permanent Life Insurance plan for you.
So, to take such pre-cautions in life, contact us for a free consultation on a Life Insurance package for you and your loved ones.