We showed that the ferromagnetic correlation extended far into what was thought to be the paramagnetic phase for pristine Ca3Co2O6 in our Bi-substituted compound and found a correlation between magnetic and dielectric anomaly in this region. We have observed enhancement of dielectric property (dielectric constant 200 with a loss factor 0.01 at 1 MHz), which is attributed to the high ionic polarizability of Bi. The dielectric response curve indicates two stages in the relaxation process, which is confirmed by the two peaks in the loss tangent (tanδ) plot. Higher relaxation time (8.9 × 10−10 s) obtained from analyzing the dielectric response curve using Arrhenius law suggested a collective dielectric relaxation process in this system.