UNIVERSAL LIFE INSURANCE

The very flexible permanent life insurance option known as universal life combines savings with the affordable term life protection. Within a tax-sheltered account, you can customise your investment choices as well as change your monthly contribution amount and death benefit alternatives. It enables you to pay premiums in part with the interest or returns from your amassed savings.

Under the following conditions, it is a good option:

  • People who have contributed the most to RRSPs and pensions.

  • Ideal for charitable donations and estate planning.

  • Individuals who desire to generate additional future income yet are in a high marginal tax bracket.

  • Can be employed to finance buy-sell contracts.

  • For those who want permanent insurance and prefer to pay for it within a specific time frame, such as 10, 15, or 20, a limited payment plan is an option. It is an alternative, non-RRSP tax-sheltered investment. There are a lot of factors and features to consider when buying a universal life insurance policy.

  • The level insurance costs, or rising term rates are your options. If the term is rising, the initial cost is cheaper, but the cost of insurance rises steadily over time.

  • The death benefit choice that best suits your needs is yours to select. You have the option of a level death benefit or a growing death benefit, which consists of the initial face amount plus any accumulation.

  • You can select the investment that best fits your risk tolerance. Investing in index-based securities is related to the Management Expense Ratio (MER). Most plans provide you the option to select a GIC, a savings account, or a diversified investment portfolio.

  • The “mortality charges” are revealed. Your death benefit’s “pure” cost is covered by this fraction of your universal life insurance premium. Your administration expenses will often remain constant for the duration of your policy if annual administration fees and premium taxes are disclosed.

To help you decide in choosing the right insurance