Universal life insurance is the all in one solution
Universal life insurance serves several purposes. It is a diverse and flexible product that allows you to not only protect your family’s financial future, but also use it as an investment vehicle. It is a good option for individuals, investors, and business owners.
ThinkInsure has a large partner network of life insurance providers. Our advisors will work with you to create a universal life insurance plan designed specifically for your needs and budget. We'll shop and compare the best rates from our partners to get you the most affordable policy.
What is universal life insurance?
Universal life insurance is the most flexible insurance protection available. This type of insurance gives you the ability to determine, and at times, adjust your death benefit and investment mix. Universal life also provides tax advantages for you as an investor. Build your portfolio while you protect your loved ones.
Universal life offers you two important benefits :
- Savings (often tax-deferred)
- Life insurance coverage for the long-term (usually lifetime)
How does universal life insurance work?
You determine the blend you want of investment and insurance protection. Your monthly premium will be split into two parts – life insurance and savings/investment.
When you make deposits beyond your prescribed insurance premiums, these funds can be invested and will earn interest. Your investment portion will grow – and tax on your investment will be deferred.
When the value of your policy builds, you can withdraw funds or take out loans against your account. Like other loans, you will incur interest.
You can maintain your level of coverage or you can opt to increase it over time. Or you can choose a combination of level and increasing value of life insurance.
On payout, there are no tax implications for your beneficiaries.
When should you buy universal life insurance?
It is an important building block of your long-term wealth strategy. It is designed to protect you and your loved ones and help you build your portfolio throughout your life. It is a popular choice for people who :
- Have no more room for RRSP contributions.
- People who want to augment their estate for children and grandchildren.
- Entrepreneurs and businesses who want to protect their business’s value.