Participating life insurance (also called par insurance) is a type of permanent life insurance. Like all permanent life insurance, it’s a policy that stays in effect for as long as you live, no matter your age or health. After you die, your family or beneficiaries will get a tax-free death benefit they can use any way they want provided you’ve paid your premiums.
Par insurance gives you the opportunity to earn policyholder dividends. You can use these in different ways, for example to reduce your premiums or get more coverage. Or you can receive these as cash.
Par insurance also provides the chance to grow cash value. Cash value is a savings portion of your policy that earns interest. It can grow over time, and you can borrow from it as a loan or withdraw from it. Borrowing or withdrawing funds from your cash value may reduce your policy's death benefit.
An advisor can explain how it works and help you decide if par insurance is right for you.
There’s no cost to talk to a Sun Life advisor – in person, virtually or by phone.