Participating Life Insurance with Cluett Insurance
Get The Best Of Both Worlds
Participating life insurance is a lifelong insurance protection for your family with the potential to grow your wealth tax-free.
What Is Participating Life Insurance?
It is lifelong coverage that pays your beneficiary a tax-free payment when you pass. Your policy is guaranteed to grow in cash value as long as you pay your premiums. Cash value is the value of the insurance policy that you can access as cash.
Your payments are pooled in a separate account called the participating account with other policyholders. The funds are professionally managed and may provide you with a dividend.
Protection with premiums that will not go up.
Cash value that is guaranteed to grow.
Potential to receive a dividend.
How Does Participating Life Insurance Work?
With participating life insurance you pay your premiums and they go into an account called the “participating account,” which is professionally managed. Your money can grow in cash value and you can use that money to pay for expenses, taxes, insurance claims, etc. You may also receive a dividend as cash, which can be used to buy more insurance or pay for your existing coverage. When you pass, your beneficiary will receive a tax-free payment.
How Much Does Participating Life Insurance Cost?
Participating life insurance can be more expensive than term and universal life insurance because of the policy’s guarantees. Several variables determine the cost of your policy, here are a few of the main factors:
Generally, the younger you are the cheaper your insurance will be.
Your family history, medical history, and lifestyle can increase your premiums.
If you have a dangerous job, your insurance costs may be higher.
Is Participating Life Insurance Right For You?
- Fund your kid’s future. You have access to your policy’s cash value to help pay for things like post-secondary education.
- Pay for emergency expenses. Navigate unexpected costs like home repairs by accessing your policy’s cash value.
- Leave a legacy. Help your family or not-for-profit enjoy what you hve worked so hard to build.
Participating vs. Universal Life Insurance
Participating Life Insurance
- Guaranteed money growth inside your policy
- Conservative asset management
- Policyowner dividends
Universal Life Insurance
- Cost effective
- Payment flexibility
- Choose investment options
- Lifetime insurance coverage
- Guaranteed premium options
- Guaranteed payout
Learn more about universal life insurance.
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Call a Cluett life insurance licensed advisor today to get started.