UNIVERSAL LIFE INSURANCE

 

Universal life insurance is a term life insurance policy with a saving element attached. As compared to whole life insurance policy, it is more flexible as the death benefit, premium and savings factor can be altered at any time as per the desires and financial situation of the policy holder.

Canada Insurance Coverage from Toronto is the company that can offer you Universal Life Insurance!

Major benefits of universal life insurance are as under:

• Flexible Protection: You can raise your basic coverage up to an amount of your choice.
• Flexible Premiums: You can control the amount and frequency of premiums as per your needs.
• Tax free death benefits: Under current tax laws governing individual life insurance, life insurance proceeds are generally income tax free to the beneficiary.
• Guaranteed Return: No matter how badly the investments go by the insurance company, you are guaranteed a certain minimal return on the cash portion.
• You can add Term insurance clauses to provide extra coverage.
• You can apply for a loan against the cash value or withdraw all or a part of the cash value, a portion of which may be accountable as taxable income.
• You can enjoy tax-deferred growth on your investment returns earned based on the current provisions in the Income Tax Act (Canada).

 

Few things you must understand about the universal life insurance:

 

It is permanent: It never expires unless you cancel the policy or do not pay the premiums.

It has a savings account built in: The insurance premiums go to three separate parts of your policy namely, The Life Insurance, Fees and Investments. The investment part is just like savings account which grows over the period and it usually grows tax free.

You have the control over the investment part of the policy: You can decide where you savings is invested among several choices provided by the insurance company. Usually included options are saving accounts, guaranteed term deposits and investment funds (similar to Mutual Funds)

Three ways to access the savings in the policy: (a) You can withdraw your savings partially, (b) you can take a loan from the policy and (c) you can cancel your policy.

Taking money out of your policy may reduce the death benefit: The death benefit is the amount owed to the beneficiary of your life insurance policy at the time of your death. The more money you take out from the savings, the fewer amounts they will receive as death benefit.

The investment savings may be lost when you pass away: With whole life insurance, the savings part is almost kept by the insurance company at your death. But with Universal Life Insurance you often have a choice to have both the life insurance and the savings paid out.

On non-payment of the premium, the insurance company will use the money from the savings so that the policy remains effective: This goes on until all the savings is used up or until you start paying premiums again. On using up all the savings and even if you do not pay the premiums, the policy will be deemed as cancelled.

Universal Life Insurance usually has higher fees and administration costs as compared to term life insurance: Insurance companies and the agents make good money by selling Universal Life Insurance and this money is from the fees you pay.

 

Just call on 1.855.846.2524 and get best policies for you and your family. you can email us on info@canadainsurancecoverage.ca

 

 

 

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