Participating Life Insurance

Are you going to get life insurance? This isn’t a question that you should be asking yourself. No, you should be asking yourself, when you are going to get life insurance? And, the answer would be the earlier, the better. When you are young and healthy, you are going to be considered a lower risk, which means that your premiums will be lower. Not only this but since participating life insurance is more like an investment, it is going to help you save money over time.


Whole Life Insurance

Whole life insurance is the type of insurance where coverage remains in force whole life. That makes it very clear that it is a permanent life insurance. There is an option available where whole life insurance can be paid for a shorter period of time and get’s paid up and coverage remains in force all life. There are certain whole life policies which have additional advantage of cash accumulation. Cash inside the policy grows and is available for the policy holder to withdrawal from the policy if needed.

This means that policy not only provides a death benefit after death but also provides cash availability if needed while alive. Of course, withdrawing the cash value would affect the death benefit but unlike term insurance this gives an extra peace of mind for additional premium dollars paid into the policy.

There are two types of whole life policies. Participating whole life and non participating whole life. 


Participating Whole Life

Participating whole life policies are the policies where policy holders receive the dividends into the policy if declared by the company. Dividends declared once vest into the policy and become part of the guarantees of the polices going forward. So regardless of the performance of funds you never see the cash value decrease unless you opt to use it.

Participating whole life policies have great benefits. There is a guaranteed payout at the death. Premiums for the policies are fixed meaning they never change regardless of the age. Over the period of time cash value is built into the policy and policy holder can access the cash value while being alive for any emergency need or child education or retirement income. The cash value of the policy grows tax free while inside the policy subject to government limits.


Non Participating Whole Life

Non participating whole life policies are also permanent whole life insurance polices just like the participating whole life policies. The only difference is that there is no annual dividend declared to the policy.

These policies are comparatively simpler and lower premium. They also provide life time protection, cash values, and shortened premium payment methods.


Is The Participating Policy For You?

When shopping in Canada, you no doubt have a number of different options available to you when it comes to life insurance. Not only are there number of different providers to choose from, but there are several different policies. One being the participating policy. And, this policy isn’t right for everyone. If you are looking for lifetime protection back with a significant savings potential, you cannot go wrong with this policy. Maybe you are just looking to make a wise investment. Some people purchase policies like this and let them accrue money towards their retirement.


Paying A Monthly Premium

The minute you obtain a life insurance policy, you are agreeing to pay a monthly premium. The amount of the premium will vary, depending on the coverage, age, and type of life insurance you choose. There is a broad range of life insurance policies available on the Canadian market. It is up to you to decide how much protection your loved ones will need after you are deceased. If you opt for more protection, your premium will reflect that amount, which means it will be higher than if you choose less coverage.

Your age will also have an impact on the amount of your monthly premium. A young person between the ages of 18 and 30 will pay lower premiums than people between the ages of 31 and 70. 


Adds Protection For Your Beneficiary

The main reason why people obtain life insurance is to make sure their family is financially protected after they are gone. Once you obtain life insurance, your beneficiary is guaranteed financial protection as long as you pay your monthly premium. Unfortunately, life insurance is only good as long as the policyholder pays their monthly premium. Even if you diligently pay your premium for 10 years and suddenly stop making the payments, your policy will expire after the due date or deadline. And, your beneficiary loses the financial protection offered by the life insurance policy.


Why Choose Sim Gakhar?

There is no getting around the fact that life insurance is essential. It is that safety net that you need to protect your family in their most sensitive time of loss. They not only lose a family member, they lose emotional as well as financial support. A life insurance policy can definitely support to an extent. Choosing the right provider will be just as crucial as choosing the right type of policy. Sim Gakhar understands those moments as she has delivered those claim cheques herself and has felt the emotions in the eyes of the family members left behind. A proper needs analysis done by Sim Gakhar covering every spec of your life definitely has an added peace of mind. 


Get in touch

I am always a call away. If you are looking into life insurance coverage for the very first time or would like to discuss your existing policies, I would be glad to be your life insurance and investments advisor in Markham, Ontario!

My contact information can be found here.

Sim Gakhar


Other types of life insurance products you may want to check out