Talk to our Licensed Insurance and Investment Agent

universal life insurance

Did you know that universal life insurance is a permanent life insurance which contains both insurance and an investment component? This combination can give you the financial protection you need plus a tax effective way to save for retirement beyond RRSP and TFSA limits.

loading app.

Compare Quotes With Top Canadian Life Insurance Providers

Universal Life Insurance

Another type of permanent life insurance that combines the protection with a tax advantage investment. It helps to maximize the transfer of your wealth to your family in a tax efficient way.

  • The three pricing factors are unbundled: Cost of insurance, expenses charged by the insurance company and investments options available to the policy holder.
  • Flexibility: You can have a flexible premium schedule, subject to the term of your policy, and certain minimum payment requirement.
  • A wide selection of investment options.
  • Tax Advantaged Investing – A portion of your premium purchases your insurance, while the rest earns interest that is not taxable while it remains in your policy.
  • Access to funds – Throughout your lifetime, you can access the funds in your policy to supplement your income in retirement or during a time of illness.

How it works?

  • Premiums deposited to investment account.
  • On a monthly basis – Premium tax, Cost of insurance, Cost of riders and benefits, and policy are deducted.
  • Investment return credited
  • If there are adequate funds in the cash account to cover costs, the plan stays in force.
  • Lump sum deposits can be made at any time.
  • If investments returns are ahead of projections, premium payments can be skipped.
  • If investments returns are below projections may have to add more money.

Advantages

  • Can be cheaper than whole life insurance because it does not offer the same guarantees.
  • Flexible premiums
  • Accumulation of cash value like a savings account
  • Allows policy loans against the accumulated cash value without tax implications

Disadvantages

  • Complexity
  • Investment returns are not guaranteed
  • Some withdrawals are taxed: when UL policyholders withdraw some of the cash value, it will be taxable
  • Have a question we didn’t answer?

    Call 1800-666-0483 to speak with our licensed insurance advisors right away or email us at info@vertexinsurance.ca to book an appointment.

  • Rashi, a client of Vertex Insurance and Investments Inc., when asked would you recommend Vertex Insurance to your friends or family and why? Here was her reply!

    Rashi

    A Professional Banker, a client of Vertex Insurance

    testimonial Image
    Play Story

    Signup Our Newsletter

    ×

    Looking for better prices or have questions?

    Speak with our Licensed Insurance and Investment Agent Call 1800-666-0483