Bank On Whole Life for Individuals
What is Bank On Whole Life for Individuals?
Participating whole life insurance, when properly structured, can provide lifelong insurance protection, a tax-free death benefit, and cash value that grows over time.
This cash value becomes an asset you own and can access, helping support long-term financial planning, liquidity, and future flexibility.
How Does Bank On Whole Life Work?
The cash value of a participating whole life insurance policy can be compared to the equity you build in a home over time.
As mortgage payments increase your ownership in a property, a properly structured participating whole life policy can build cash value that becomes a financial asset within the policy.
This is one of the reasons participating whole life insurance is often viewed as more than just insurance protection. In addition to providing lifelong coverage and a tax-free death benefit, it can also create long-term financial value that you own and can access as part of your overall planning.
Like home equity, this cash value may also provide added flexibility. Many individuals, families, and business owners use participating whole life insurance as a way to build a stable asset that can support future opportunities, liquidity needs, and long-term goals.
Another important feature of participating whole life insurance is its potential to earn dividends. While dividends are not guaranteed, participating whole life policies have a long history of paying them. When available, dividends can be used to purchase paid-up additions, which may help increase both the policy’s cash value and death benefit over time.
When properly designed, participating whole life insurance can serve multiple purposes at once: lifelong protection, long-term asset growth, and greater financial flexibility for the future.
These are just a few examples of how participating whole life insurance can support major financial decisions today while also helping protect your long-term estate and legacy:
- Saving for Education: Rather of using a RESP to direct your child’s or grandchild’s education savings, use a Bank On Whole Life plan. In order to start saving for your child’s post-secondary education ahead of time with guaranteed growth, you can take out a policy on them during the first year of their birth at lower, more inexpensive rates. This way, you will know what is available when the time comes to use it.
- Lifestyle Purchases: The equity in your Bank On Whole Life plan policy provides you with flexibility and access to a liquid cash reserve that you can utilize to finance your own needs as they arise. Vacations, new business equipment, cars, home improvements, and just much anything else you can imagine have all been paid for by our clients using their Bank On Whole Life plans!
- Securing Retirement: When you retire, a Bank On Whole Life plan provides an extra source of income. Even better, on the day you expect to access your account, you will be able to rest easy knowing the precise minimum guaranteed value. An RRSP can’t give you the same guaranteed worth of money when you retire because it is tax-deferred and vulnerable to market swings and volatility.
- Planning for Legacy: In addition to assured profits, a Bank On Whole Life plan gives you the opportunity to collect yearly dividends. These dividends can be used to buy more insurance, which speeds up the growth of your policy’s cash value and death benefit—a fantastic way to accumulate wealth and leave a legacy for future generations.
- Charitable Giving: A Bank On Whole Life plan can strategically increase the size of your charitable giving and lower the income tax on your estate without affecting your family’s inheritance if you regularly donate to a charity.
Benefits of Bank On Whole Life for Individuals
- Tax Benefits: You can access your capital and growth without paying taxes if you generate a tax-free retirement income under current legislation.
- Insurance Protection: Leave a legacy and safeguard your family financially.
- Cash Flow: Make the most of your money to concurrently save for retirement, build an emergency reserve, and cover your own living expenses.
- Annual Dividends: Increase wealth through safe, steady, long-term savings growth.
- Guaranteed Returns: By removing financial loss and needless risk, you can keep more of your money.
- Financial Control: Be able to access your funds without incurring penalties for any financial needs you may have for today and tomorrow. Ascertain the value of your retirement account on the day you intend to retire.
- Legacy Planning: Leave a charity legacy or safeguard your estate for future generations.
