Who is this for?
If your goals are to acquire protection for the rest of your life and the ability to build cash value to support your financial goals, participating life insurance may be the solution you’re looking for. As opposed to term life insurance – which only protects you for a set period of time – participating life insurance lasts your entire lifetime (so long as you continue to pay your premiums).
If you already have term life insurance, you can convert to participating life insurance without undergoing further medical examination. Your financial security advisor can tell you more about how this process works.
How will this help me?
Participating life insurance will provide coverage for life. It’s simple: Keep paying the required premiums and you’ll always be insured. Money made available through participating life insurance can be paid to your named beneficiaries tax-free when you pass away, potentially making the process of settling your estate much easier for your loved ones.
Finally, the cash value of your participating life insurance policy can grow tax-advantaged over time (within legislative limits).* Overall, a participating life insurance policy can help protect you and your family while having access to cash values during your lifetime.
What else do I need to know?
How participating life insurance works
The premiums you pay, along with the premiums of other London Life participating policyowners, are credited to London Life’s participating account. We manage this account, investing its assets. Earnings come from better than anticipated experience for investments, mortality, expenses and other factors relative to the assumptions used when pricing the products.
We may distribute some of these earnings in the form of policyowner dividends. Dividends are not guaranteed.
You can use dividends in a number of ways, including the purchase of more coverage on a tax-advantaged basis or the reduction of your annual premium payments. You can even take these dividends out as cash (though any cash values withdrawn may be subject to tax). Actual dividends, if any, paid over the life of a policy will go up and down.
* If the accumulation stays within prescribed limits, the cash value is only subject to income tax when it’s withdrawn.
Participating account investment reports
The participating account investment reports provide investment information for the total participating account, as well as detailed information for each asset class in the participating account.
Connect with an advisor
Working with a financial security advisor can provide you with the tools and expertise you need to plan for the future.