Participating whole life insurance is one of the most tried and tested products in the life insurance industry. It has had its ups and downs, but the stability, security, and simplicity of whole life has kept it as one of the most popular forms of permanent insurance. Despite this, clients are still often confused and bewildered by the high cost of the products.
Once a client understands the value of having a guaranteed death benefit even if their health deteriorates, a guaranteed level premium, guaranteed cash values, as well as additional dividend opportunities, the option becomes far more attractive.
Understanding the product options and how to fit your clients’ needs with the best solution is key. In general, whole life comes in two flavours: wealth and estate versions. The wealth versions are designed to maximize early cash values, resulting in a product that can be used to help fund obligations while the policyholder is alive, such as an education fund or retirement. The estate versions are designed to maximize long-term growth of the death benefit, which is ideal for estate planning.
To see if participating whole life may be a good solution for your client, check out the Insurance for Your Whole Life applet in the PPI Toolkit today.