What is
Cash Value Insurance
Participating whole life insurance is a permanent policy that combines lifelong coverage with guaranteed cash value growth and the potential for annual dividends from the insurer.
For business owners, it’s more than just insurance, it’s a strategic financial asset. Held personally or within a corporation, it can be used to protect shareholders, fund buy-sell agreements, secure tax-advantaged asset growth, or access capital through policy loans without disrupting your business.
What it Covers?
Tax-free death benefit for business continuity, key person protection, or succession
Guaranteed cash value accumulation you can use for:
- Emergency capital
- Future business opportunities
- Collateral for loans
- Executive compensation
Potential annual dividends, which can be used to:
- Increase coverage
- Accumulate inside the policy
- Reduce premiums
- Be accessed or reinvested
Can be structured as corporate-owned, with planning to optimize Capital Dividend Account (CDA) payouts to
shareholders upon death
Who Is It For?
For business needs, coverage amounts are often higher and structured based on:
The value of the company
Buy-sell agreement funding needs
Key person valuation
Tax-sheltering strategies for retained earnings
Legacy or shareholder benefit planning
Typical corporate policies range from $250,000 to $10,000,000+, depending on goals.