What is the recommended insurance policy for Mr. Juan dela Cruz, given his earnings and risk tolerance?

In this scenario, the recommended insurance policy for Mr. Juan dela Cruz, considering his earnings and risk tolerance, is a participating whole life policy. This type of policy offers several advantages that align well with the needs of individuals who have a stable income and prefer a conservative approach to insurance.

Participating whole life policies not only provide lifelong coverage but also accumulate cash value over time. This cash value grows on a tax-deferred basis, which can be an attractive feature for someone with a steady income. Additionally, as a participating policy, it allows the policyholder to receive dividends from the insurer based on the company's performance. These dividends can be used to reduce premiums, purchase additional coverage, or be taken as cash, enhancing the financial flexibility for Mr. dela Cruz.

Moreover, participating whole life policies are typically considered lower risk compared to variable life policies, which are more suitable for individuals with a higher risk tolerance since they are affected by market fluctuations. Therefore, for someone with a preference for security and predictability, such as Mr. dela Cruz, participating whole life insurance aligns with both his earnings and his risk tolerance effectively.