Universal life insurance
Universal life insurance is a type of permanent life insurance that offers a unique combination of life insurance protection and savings, with maximum flexibility to adjust your premiums and coverage.
Key points
What is universal life insurance?
Universal life insurance is a type of permanent life insurance that offers a combination of life insurance protection and savings. Premiums are generally more flexible than those of whole life insurance, and policyholders have the option to adjust the coverage amount and premiums to suit their needs.
The investment component allows your cash surrender value to grow in a tax-efficient manner. You can choose from various investment options, making it a strategic tool for both wealth protection and accumulation.
Did you know that
Universal life insurance represents approximately 10% of life insurance policies held by Canadians, according to Statistics Canada.
Pros and cons
Weigh the pros and cons to determine if universal life insurance is right for you.
Benefits
- Lifetime coverage, as long as premiums are paid.
- Flexibility in premiums and coverage amounts
- Accumulation of a surrender value invested in investment funds
- Tax-efficient growth potential of the redemption value
Drawbacks
- More complex, which can make understanding the product more difficult
- Investment performance can affect the surrender value and sustainability of the hedge.
- Management and investment fees may be higher than those of whole life insurance.
How does it work in practice?
The case of Sophie, a 35-year-old professional
Sophie takes out a universal life insurance policy to benefit from lifetime coverage and the ability to save for her retirement. She regularly adjusts the premiums and coverage according to her needs and financial situation, while also benefiting from tax-efficient growth in its surrender value.
Other types of life insurance
Compare the different forms of life insurance to find the one that best suits your situation.
Term life insurance
Affordable protection for a fixed period. Ideal for covering specific financial obligations.
learn moreWhole life insurance
Permanent lifetime coverage with a fixed premium and a cash surrender value that grows over time.
learn moreParticipating life insurance
Lifetime coverage with the possibility of receiving dividends based on the insurer's performance.
learn moreProtect your family's future
Universal life insurance combines protection and investment with maximum flexibility. Contact us for personalized advice and start protecting your family's financial future today.
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