Universal Life Insurance
Universal Life policies are one type of permanent insurance: a policy that covers you for your entire lifetime rather that a pre-determined portion of your lifetime as in Term Life policies.
A Universal Life policy keeps the savings and insurance components completely separate. Within policy limits, you can decide how much or how little you want to pay into the policy, or even pay a single premium to fund the entire policy. You decide how your premium is invested, and can withdraw cash from your policy or borrow against it. You can adjust the premium and the value of your death benefit.
Like an RRSP, a Universal Life policy allows you to accumulate interest while tax is deferred, enabling you to realize returns that may be significantly higher than those offered by traditional savings vehicles.
Universal Life is affordable and flexible coverage on your life and an investment component that offers you tax-sheltered guaranteed or variable investment choices.
Universal Life allows you to:
- choose from a wide range of investment options for tax-advantaged investing according to your personal risk-tolerance level
- realize returns that may be far more significant than traditional savings vehicles because the Account Value of your policy grows on a tax-deferred basis
- earn bonus interest on amounts invested in your Universal life policy