North York is a region located in the city of Toronto, Ontario. North York originally started out as its own township in 1922, and it became a city in 1979. In 1998, North York and several other municipalities were amalgamated into the single municipality that is known as present-day Toronto. Over 635,000 people live in this region, which contains some extremely affluent areas as well as some very poor ones. Residents of North York come from many different backgrounds – more than 50% of all residents were not born in Canada.
Although people from North York may not necessarily share a common past, one thing they do share is a desire for their families to be taken care of in the future. One way to do this is to purchase life insurance so if the family’s breadwinner dies, at least the family will still have some financial support. One form of life insurance commonly bought and sold today is universal life insurance. Universal life insurance is a kind of permanent life insurance that has a cash value. A cash value is when an insurance policy is worth money even before it comes time for the insurance company to pay out to the beneficiaries. A cash value is built up through premium payments; what happens is that with each premium payment, the policyholder pays more than the actual premium, and that additional money collects interest. With most universal life insurance policies, the policyholder is allowed to determine how much they want to pay in premiums; most policies merely specify the minimum or maximum amount that can be paid.
There are many reasons as to why someone would want to purchase universal life insurance. One reason is to provide money to cover final expenses such as the funeral or unpaid medical bills. Universal life insurance can be used to pay off personal and business debts, or it can function as income replacement for the deceased policyholder. Some policyholders intend their universal life insurance policy to provide estate liquidity or estate replacement.
Universal life insurance isn’t just for families – some people purchase them for business reasons as well. For example, a businessperson may take out universal life insurance on their business partner, and in the case of the partner’s death, they are protected from any financial loss. An employer may pay for universal life insurance for an employee as an executive bonus, or an employee and employer may split the payments in what is known as a split dollar plan.