See how a par whole life policy's dividend option reshapes cash value and death benefit over time.
How this works. A participating (par) whole life policy shares in the
insurer's surplus through annual policy dividends: not guaranteed, and set by a dividend scale
the insurer reviews each year. The dividend option decides where each dividend goes.
Cash and premium-reduction take the money out of the policy, so the cash value and death benefit track the
non-par baseline. Paid-up additions buy extra paid-up coverage that lifts both the
cash value and the death benefit; accumulation grows a side account; one-year term
lifts the death benefit only, for that year. Slide the scale and watch the lines diverge.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.