Universal Life
Insurance

Universal life insurance is a permanent life insurance policy that covers a policyholder as long as they live, and includes a saving component, that allows cash values to accumulate through investment options. Universal life insurance may be referred to as an “unbundled insurance, as there are options to vary monthly deposits, choose a level death benefit or increasing death benefit. This plan requires you to be responsible to choose and manage investment choices within the insurance plan. Universal life insurance plans are a good option for those who want to actively manage their plans.

There are several investment options you can choose from such as no-risk type of investments; such as GICs, guaranteed investments as well as varied mutual funds, such as Canadian equity funds, US equity funds, balanced funds. While management fees may be a little higher on these funds, there are tax sheltering options available on the plans. The plans also allow flexibility, in taking a premium holiday, or pay off a policy in limited number of years.

Universal life plans are beneficial when:

• You want flexibility in monthly contributions and the ability to choose level or increasing death benefit options.

• You want a combination of an insurance and investment product.

• You would like to manage and decide how your investment component is invested.

• You want to have life-long coverage that does not expire.