What is Dividend Paying Whole Life Insurance?

Whole life insurance is a type of permanent or “cash value” life insurance that provides benefits for the “whole” of your life (versus term insurance that only lasts for a specific period of time).

Some companies offer dividend paying whole life insurance policies which means the policies pay dividends. These policies are also known as participating whole life insurance, because the policy owners participate in the profits generated by the company.

Dividends are not guaranteed, however some companies have paid them every single year for over 160 years, including during the Great Depression. You can use your dividends in a variety of ways – you can take them in cash, leave them to accumulate interest, or use them to purchase “paid-up additional insurance,” which will increase your policy’s face amount or death benefit.

Whole life policies have a guaranteed, pre-set annual cash value increase. The guaranteed increases are based on a “worst-case” financial results scenario projected by the insurance company.  In a participating policy, at the end of the year, the company does an accounting of the death claims paid, their earnings, and the expense of running the company and the premiums it collected.  If they did better than their worst-case projection, they pay the policy owners a dividend.

Whole Life Insurance Benefits:

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  • A level premium guaranteed never to increase, thus giving you some protection from inflation
  • A guaranteed death benefit
  • Tax-deferred cash value accumulation
  • The ability to borrow against your cash value, allowing you to become your own source of financing and bypass banks, credit card and finance companies
  • The ability to have a guaranteed, predictable income in retirement, without the risk or volatility of stocks, real estate and other investments

Suze Orman and Dave Ramsey’s Big Blind Spot…

Financial gurus such as Suze Orman, Dave Ramsey and others will tell you whole life insurance is a lousy place to put your money.  However, the policies they talk about are NOT dividend paying policies. In a dividend paying whole life policy, both your cash value and your death benefit grow by an exponentially increasing amount.

The kind of dividend paying whole life insurance discussed on this website and in our FREE Report includes little-known riders or options that grow your cash value significantly faster than the policies Orman, Ramsey, etc. talk about, especially in the early years of the policy. (This is sometimes referred to as “high early cash value” or “overfunded” dividend paying whole life.) Structured this way you’ll have cash value in your first month and can use your policy as a powerful financial management tool right from the start.

However, no two policies are alike.  Yours would be custom tailored to help you reach as many of your short-term and long-term goals and dreams as possible, in the shortest time possible. To find out what your bottom-line numbers and results would be if you added a super-charged dividend paying whole life Bank On Yourself policy to your financial plan, request your FREE, no-obligation Analysis here now. Discover how you could have an income in retirement that you won’t outlive!
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Why haven’t you heard about Bank On Yourself-Type Dividend Paying Whole Life Insurance Policies?

The two biggest reasons are that the insurance agent or financial advisor receives 50-70% LESS commission when structuring your policy this way. That’s because a large portion of your premium is directed into two riders that turbo-charge the growth of your cash value, but only pays the agent a very small commission. And because only a handful of companies offer this type of policy, it’s not even covered in the traditional training and certification programs agents take.

Learn how to find a Bank On Yourself Authorized Advisor willing to reduce their commission by 50-70%.

Key difference imageLearn the three key differences between super-charged “Bank On Yourself-type policies” and the ones most advisors talk about.

Whole life versus Universal Life and Indexed Universal Life – which is best?

One more thing and it’s important – no other type of permanent or cash value policy comes with as many guarantees and advantages as whole life insurance. The only part that’s not guaranteed is the dividend (which is why we recommend using a company with at least a 100 year track record of paying them).

Insurance PolicyToday, many agents are pushing indexed universal life and universal life, which can look good “on paper,” but in real life don’t hold up to their promises.  (They can show very unrealistic returns.  A whole life policy can only be illustrated at the guaranteed rate and the rate based on the current dividend.)

[See 7 Reasons to Be Wary of Indexed Universal Life Insurance]

Universal and variable life policies have an investment account wrapped up in them.  Most people already have way too much of their savings invested in the stock market, which is one big reason so many Americans are in the financial pickle they’re in today!

Although whole life insurance is not considered to be an investment, the rate of return of a properly structured Bank On Yourself-type policy is enviable – and doesn’t have the risk of stocks, real estate and other traditional investments. In fact, this video reveals how you would have to get a nearly 10% annual return in a tax-deferred plan like a 401(k) or IRA to equal the return of a properly structured dividend paying whole life insurance policy.

For a fair and unbiased comparison of the advantages of whole life versus universal and indexed universal life, check out these two articles:

Find Out How a High Early Cash Value, Low Commission Dividend-Paying Life Insurance Plan Lets You Take Back Control of your Financial Future…

A properly structured dividend-paying whole life policy gives you more advantages and guarantees than any other type of cash value life insurance policy or traditional retirement savings account.  But no two policies are alike – yours would be custom tailored to your unique situation, goals and dreams.

Find out how much your financial picture could improve with a properly structured high cash value, low commission plan by requesting your FREE Analysis today!Request Your Analysis Button