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Life, Health, Disability & Term Insurance

Universal Life Insurance Canada

Universal life insurance is a financial planning to give the protection of permanent life insurance and also options for tax-deferred investment account to help grown your savings. With accumulation of cash values, one can pay part or all of the insurance cost with the amount.

If you buy universal life insurance:

  • Your selected death benefit amount will be paid to the beneficiaries in the event of your death.
  • The payments you make will be deposited to a “policy fund”
  • The money deposited over and above the required cost of insurance can either be placed into investment accounts to grow deferred or else it can be used to increase the death benefit value.

The payment made into your universal life insurance policy is divided into three parts:

  • The insurance premium
  • The administrative fee and premium tax
  • The remaining part which is deposited into your choice of  investment account

Universal life insurance provides an additional means of income for emergencies, estate planning or retirement. It is better to select a customized universal life insurance plan that you are comfortable with, your financial goals and circumstances and which change over time to fit your changing lifestyle, budget and savings.

Tax Advantages Growth

With this type of plan, your total policy account value can increase on a tax advantaged basis within limits. Upon your death, the proceeds of your insurance paid to your beneficiaries are tax-free and may comprise of the total account value that you have been building up over the years.

Who is Universal Life Insurance for?

  • Universal life insurance is popular among:
  • People with increased RSP contributions
  • Parents looking to maximize their estate for their children
  • Business owners searching for a tax-efficient way to protect their business value