Whole life insurance with dividends
The whole life insurance is a type of permanent life insurance that provides lifetime coverage and builds a cash value. Lifetime coverage is an attractive feature of this policy that makes it a good choice. The paid premiums are used for paying the death benefits and building the cash value. A portion of these payments can be used to invest to generate a profit. Some whole life insurances also have the option of including policy owners in these profits. This is done by paying them the dividends. The profit generated is also given to the policy owner through payments made in a separate account. This account is called a participatory account, and the policy is known as a participatory policy. Whole life insurance with dividends can go heavy on the pockets compared to any term or whole life insurance because of the investment factor.