Universal Life Insurance

By: Mylife Canada  09-12-2011
Keywords: Life Insurance, Segregated Funds, Insurance Policy

Key Facts

  1. An Insured Retirement financial strategy can substantially increase the value of your investment portfolio.
  2. A Universal Life Insurance Policy can help protect your estate against taxes.
  3. You can leave a signficant charitable donation through small premium payments.

myLIFE CANADA ~ Mr. Dempsey

Universal Life Insurance from myLIFE CANADA offers flexibilty and lifetime coverage to meet your varied life needs.  To address the need for insurance products more responsive to the changing economy, insurance companies began marketing a new generation of insurance products including the Universal Life policy. Universal Life insurance is characterized by its flexible premiums, flexible face and death benefit amounts. You can determine, within limits, the amount of premium you want to pay.

  • Universal Life insurance has two parts: the insurance and the savings.
  • During your lifetime, the policy's cash value (after a stipulated number of years) is accessible for withdraw or as collateral. Any growth on this money withdrawn will be taxed.
  • The Universal Life policy is used for many things including:
    • Retirement Savings
    • Estate Planning
    • Business Planning
    • Educational Funding
    • Corporate Charitable Gifts
    • Planning Giving
  • Any amount of the premium that is over and above the cost of insurance and any fees are designated to your policy's cash value account. The money in this account is invested in segregated funds and will grow tax sheltered. Upon death, your beneficiaries will receive the death benefit portion of the life policy tax free. Tax may apply to the savings portion.
  • myLIFE CANADA can help you get the policy you need to set your mind at ease.

Keywords: Insurance Policy, Life Insurance, Life Insurance Policy, Segregated Funds, Universal Life Insurance

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Other products and services from Mylife Canada


Critical Illness Insurance

Most Critical Illness Insurance plans include a full refund of premiums to the family should death occur before the maturity of the plan (usually age 75) without reporting a claim. A Critical Illness Insurance plan from myLIFE CANADA is insurance protection that guarantees the payment of a tax-free lump-sum benefit when a critical illness is diagnosed.


Mortgage Insurance

This gives your family the flexibility of using the money to pay off debts, or, if they can still carry the mortgage payments, they can use it for investing and securing a future income. Whether you're buying a home for the first time, or refinancing an existing mortgage, someone has probably suggested you purchase mortgage life insurance.


Whole Life Insurance

Charitable giving -- leaving the proceeds of the policy to charity to provide a large tax deduction for the final tax return. Whole Life Insurance has a level cost of insurance where the premiums stay the same for the life of the policy. You can add Child or Spousal Riders -- additional insurance coverage for a child or spouse on the same policy.


Term Life Insurance

However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation. Once the policy is expired, it is up to the policy owner to decide whether to renew the Term Life Insurance policy or to let the coverage end.