Participating life insurance can provide you with a long-term source of liquidity and help you reach your retirement goal. It’s lifelong coverage that pays whomever you choose a tax-free payment when you die. Your policy is guaranteed to grow in cash value as long as you pay your premiums. Cash value is the value of the insurance policy that you can access as cash. Your insurance payout is reduced when you access your cash value.
Your payments are pooled in a separate account called the participating account with other policyowners. The funds are professionally managed and may provide you with a dividend.