Universal Life Insurance (UL) Policies in Canada
The popularity of universal life insurance has increased in recent years due to the amount of flexibility that insurance companies now offer. Universal life insurance is similar to whole life insurance, but you have more control of your policy.
The biggest difference is the level of disclosure and customization you get with universal life insurance. This allows the policy holder to customize their plan when they purchase it, and the option to change other components, such as premiums and death benefit at a later point, if they choose.
A key advantage of a universal life insurance policy is that it combines two of the most important aspects of financial planning in Canada. It allows you with to purchase permanent insurance protection while simultaneously growing your savings with investments, all while saving money on taxes.
If you are interested in purchasing universal life insurance it is important to take into consideration its complex nature compared to term life insurance. Buying the wrong type of insurance, unneeded coverage or too much coverage can all result in disastrous consequences. It’s for this reason that it takes a license to sell it, and that is why we only deal with licensed professional brokers. Experience the broker advantage for yourself by requesting a free comparison quote.
Is Universal a Good Fit?
So do you need all this flexibility? Remember that this level of customization comes with drawbacks, mainly simplicity. With universal life you know exactly where all your money is going; unlike a whole life insurance policy which does not disclose its administration costs, investment portion and cost of insurance. Like all financial choices it really boils down to your personal financial situation and how involved you want to be in your investment portfolio. Some would rather leave it all in the hands of the insurance company, whereas others prefer more control.
This type of policy is usually best for people that have maximized their RRSP contributions and still want to invest. Many large and small business owners are also looking for a way to protect the value of their business in a tax efficient manner. It is also great for grandparents and parents that want to ensure their estate remains as untouched by estate tax as possible for their grandchildren and children.
How We Help
There is a reason you need a license to provide financial advice. Considering the impact responsible planning plays in people’s lives your best option is to speak with a professional advisor. A qualified broker can help you better understand your options and can also make sense of seemingly complex investment products, like universal life insurance. Here at LifeCover.ca we specialize in connecting you with quotes, comparison reports and answers to your questions. Let us help you right now by requesting a free life insurance quote.