Universal Life Insurance
Universal life insurance takes a broad approach to giving you the financial protection you need for yourself and your loved ones. This financial product can provide benefits for you during your lifetime, along with a financial payout to your beneficiaries after your death.
What is Universal Life Insurance?
This type of policy option includes permanent life insurance (whole life insurance) coverage. You choose the amount you would like paid to your beneficiaries on your death.
You make payments to the insurance company that cover the amount of the premiums. An additional amount is included in this payment, and this money is placed in an investment account.
You can choose to grow the funds from the additional payment in a tax-preferred savings account. There are several options available to you if you decide you want to invest these funds. You can also decide to take the amount of these additional payments and use them toward increasing the amount of the death benefit payable on your death.
Is Universal Life Insurance the Right Coverage for You?
This type of life insurance policy may be the right form of protection for you if:
- You have already maximized your Registered Retirement Saving Plan (RRSP) contributions.
- You want the flexibility of a permanent life insurance policy and a plan that will accumulate cash value in case of unexpected expenses or an emergency.
- You are looking for a way to leave a lump sum of money that will pass to your children or grandchildren directly.