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Participating Life Insurance Policy in Ontario

Participating Life Insurance from DFSIN in Ontario

When it comes to protecting your estate and assets, one of the best ways to do so is by investing in a participating life insurance plan, like the ones offered by Desjardins Financial Security Independent Network (DFSIN) in Ontario. However, if it’s your first time purchasing life insurance or you want to know a bit more about what our premium plans entail, don’t worry, we explain everything for you here.

Long-Term Growth to Maximize Value

One of the primary reasons why many choose to invest in a participating life insurance plan from DFSIN is because of the long-term financial growth opportunities they offer. Some of the most attractive assets of being part of our participating life insurance plans include:

  • Accumulation of tax-preferred cash values that you can access whenever you choose.
  • Maximizing the value of your estate.
  • Increasing your death benefit to keep up with inflation.
  • Adapting your coverage options to keep up with your evolving needs.

How Does it Work?

 When you invest in participating life insurance from DFSIN, annual dividends aren’t guaranteed. However, your death benefit, some cash surrender values, and your premiums are. All of the premiums paid out by participating life insurance policies will be pooled together into a single “participating” account.

Currently, there are “closed” accounts that are composed of policies that were in force or acquired by DFSIN before 2017, and an “open” account consisting of participating accounts acquired after 2017.

It’s important to note that the open account is managed separately with a different rate of return and dividend scale than the closed account.

How are Dividends Determined?

 Dividends on DFSIN’s participating life insurance plans are determined by a variety of factors, including mortality rate, interest rate, investment returns, expenses and taxes (paid by the insurer), as well as a variety of other factors including policy loans, end of coverages, and more.

At DFSIN, we know that making sound investments is of the utmost importance, which is why we offer a comprehensive and diversified investment strategy designed to generate the best returns for our clients.

DFSIN’s global asset management group, Desjardins Global Asset Management (DGAM), heads the long-term investment strategy and helps determine allocation and risk management, investing in a range of fixed and variable income assets designed to offer stable performance, such as:

  • Money Market Accounts
  • Private Equity Accounts
  • Infrastructure
  • Real Estate Investments
  • Preferred Shares
  • Provincial & Government Bonds
  • High-Yield Bonds
  • Corporate Bonds
  • & More!

Monitored Returns

DFSIN, in conjunction with DGAM, monitors all returns applying a leveling method on all gains and losses in order to minimize dividend risk. Please note that in order to prevent short-term volatility, the dividend scale interest rate does not always reflect the market.

Our Personalized Coverage Options

When investing in the participating life insurance policy plans from DFSIN, you’ll be able to choose from several different personalized coverage options. Each one lets you decide how you want to pay your premiums, allows you to use dividends to purchase additional life insurance or reduce your annual premiums, and enables you to choose to stop paying premiums while maintaining your coverage.

You’ll also be privy to additional coverages and not required to pay premiums should you become disabled while you’re covered.

We offer the following participating life insurance plans:

  • Accelerated Growth 20 Pay: This solution is ideal for those looking to increase their retirement income or achieve a specific financial goal within 10-15 years due to the higher medium-term dividends it generates. Clients have the ability to choose how their dividend earnings are used and can use them to increase coverage, reduce annual premiums, or receive cash payments.
  • Accelerated Growth to 100: Like the above plan, this one is also perfect for clients looking to increase their retirement income or that have a specific financial goal they want to reach in 10-15 years. Premiums are paid for life and clients can also choose from five distinct dividend options, with an accelerated growth option that offers better cash surrender values.
  • Estate Enhancer 20 Pay: This option maximizes the long-term death benefit, making it a great solution for clients looking to optimize their cash surrender value within the span of 20 years or protect their estate. Premiums are paid up as early as the 20th year and offer maximized dividends based on continued growth. You’ll also receive paid-up complementary coverage in 20 years (except for the life insurance of children).
  • Estate Enhancer to 100: Like the aforementioned plan, this one is ideal for those looking to protect their estate or maximize their cash surrender value within 20 years. However, premiums are payable for life, and clients can receive guaranteed cash surrender values and lifetime dividends, as well as the opportunity of long-term, tax-free growth, which can significantly increase returns upon death.

Why Choose DFSIN?

One of the reasons why so many trust DFSIN with their life insurance coverage and asset management solutions is because we offer a proven record of success. We’ve consistently received the highest rankings on part with major Canadian banks and insurance companies like Moody’s (Aa2), Fitch (AA-), Standard and Poor’s (A+), and Dominion Bond Rating Service (AA).

DFSIN offers increased accountability and each year, our board of directors reviews the actuarial report to ensure that the protected dividends meet all of our company’s strenuous policies, guaranteeing fairness for all participating life insurance clients. Protecting your interests is our top priority!

How to Buy a Policy

Are you interested in learning more about your participating life insurance options or purchasing a policy from us? If so, contact one of our representatives. They’ll be able to take a look at your assets and assess which plan will be best suited to your needs.

We serve:

  • Brampton
  • Mississauga
  • Etobicoke
  • Oakville
  • Burlington

Contact our team of life and health insurance advisors online today to receive a FREE quote or call (416) 695-1433 to learn more about how DFSIN can help you protect your financial assets.

FAQ

What is participating life insurance?

Participating life insurance is a combination of two types of things: a whole life insurance plan with an opportunity for growth. In essence, it’s a life insurance policy that also enables you to invest in in a divided paying fund, while being covered under your life insurance policy as long as you pay the premiums. Many see it as a great way to leave their families a sizeable estate when they’re gone or try to add some growth to what they leave behind. The participating life insurance plan enables you to receive dividend payments, which you can then use to reduce your annual premium, buy more insurance coverage, or take them as cash payments and do whatever you want with them. For many, that’s why participating life insurance plans are such an attractive option.

To learn more about participating life insurance contact Desjardins Financial Security Independent Network by calling (416) 695-1433 or visiting them online today!

Is participating life insurance different than whole life insurance?

In terms of the life insurance coverage you receive from a participating life insurance plan, you’ll still be receiving a whole life insurance policy that will be kept up as long as you’re paying the premiums. The main difference between traditional whole life insurance and participating life insurance is that with participating life insurance, there’s another component that enables you to accrue returns on the money placed into your account. In this sense, it’s somewhat like a managed fund, as the more you invest the more your estate can potentially grow. Additionally, with a participating life insurance plan, you can receive dividend payouts that you can use for a variety of things, like buying additional insurance or reducing your monthly premiums. This option doesn’t exist in a traditional life insurance plan policy.

To learn more about the differences between traditional and participating life insurance policies, contact the team from Desjardins Financial Security Independent Network online today or call (416) 695-1433 for a free quote!

Is a participating whole life insurance policy for me?

Whether or not you choose a participating whole life insurance policy depends on your specific needs. What do you want to get out of a life insurance policy? Traditional whole life insurance plans will offer you coverage for as long as you need, but there are some unique benefits to participating life insurance plans that some might find attractive. Firstly, with a participating life insurance policy, you’ll have the option to accrue growth on your life insurance policy through paid dividends, which you can then either reinvest to purchase more life insurance, or other options, such as a cash payout; it’s up to you. For many, this is attractive because it’s almost like investing in a fund. However, participating life insurance policies can often cost more than traditional life insurance, so it’s important to weigh the pros and cons before purchasing any life insurance plan.

One of the best ways to choose the right plan is by speaking with one of the representatives from Desjardins Financial Security Independent Network. Contact them online today for a FREE QUOTE or call (416) 695-1433.

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