Participating Policy

A participating policy is a type of life insurance policy that allows the policyholder to share in the profits of the insurance company. This means that the policyholder can receive a portion of the company's earnings, in addition to the death benefit paid out upon the policyholder's death.

The amount of profit sharing that a policyholder receives depends on the type of participating policy they have. Some policies offer a fixed rate of return, while others offer a variable rate of return that is based on the performance of the insurance company's investments.

Participating policies can be a good option for policyholders who are looking for a way to grow their money while also having life insurance protection. However, it is important to note that participating policies typically have higher premiums than non-participating policies.

Here are some of the key features of participating policies:

• The policyholder shares in the profits of the insurance company.
• The amount of profit sharing depends on the type of policy and the performance of the insurance company's investments.
• Participating policies can be a good option for policyholders who are looking for a way to grow their money while also having life insurance protection.
• Participating policies typically have higher premiums than non-participating policies.

If you are considering purchasing a life insurance policy, it is important to speak with a financial advisor to learn more about the different types of policies available and which one is right for you.