One of the oldest types of life insurance is Participating life insurance. This is a form of permanent insurance, providing lifelong coverage. Premiums are paid monthly or annually, often for a limited time. Initially, premiums fund your policy’s cash value, which grows tax-free in a professionally managed account. Part of this money covers annual insurance costs, taxes, and expenses, while the rest becomes cash value, growing with annual dividends. These dividends compound tax-free, and the cash value is guaranteed to increase each year, protecting your capital.
This capital growth allows policyowners to buy more insurance, stop premiums, or withdraw cash. Participating insurance is ideal for professionals and business owners with peak incomes or excess liquidity, offering a guaranteed lifelong asset without future cash flow concerns. It’s also a great tool for parents or grandparents to provide a solid, tax-efficient financial legacy.
Advantages include stability, with a 165-year track record of annual dividends in Canada, and flexibility, allowing access to cash value through borrowing, collateral, or withdrawal. Unity optimizes these policies for advanced planning strategies tailored to you, your family, or your business.
As an independent advisory group, Unity can access the full market to find the best policy for your needs. Talk to an advisor about how Unity can help you achieve your planning goals.