Ali Pahlavani Financial Strategies Desjardins Financial Security Independent Network

Universal Life Insurance

Main Features

  • Universal life insurance is like a personal financial security portfolio. This is increasingly popular coverage, different from other life and health insurance products in that it offers greater flexibility and addresses a wider range of needs.
  • This combination of a financial product has two components:
    • A life insurance component offering a choice between term life insurance of various lengths, whole life insurance, and mortgage insurance.
    • An investment component with various investment options, including guaranteed deposits and index funds. The funds accumulate in an investment account tax-free where you can use them in various ways: as an emergency fund or additional retirement savings, or to pay all insurance premiums owing, for instance.
  • A health insurance component, adding coverage for critical illness or other general health coverage is also offered as a third and optional component.
  • This financial security portfolio is extremely flexible at the time of purchase and for the duration of the policy, giving the insured person control over premiums and the amount insured (subject to a pre-established minimum). These variables can be adjusted at any time during the life of the policy.
  • For the investment component of the policy, the maximum investment varies with each person, mainly according to the length of the policy and the amount of life insurance purchased.
  • Several add-on coverage options are offered with its universal life insurance policies:
    • Disability insurance
    • Accidental death or dismemberment coverage
    • Accidental fracture coverage
    • Coverage for the insured person’s children
    • Guaranteed insurability
    • A premium waiver in the event of disability

Major Advantages

  • This financial security portfolio allows the insured person to progressively build financial security according to personal priorities, finances, and family situation. For example, the insured person can adjust the amount of life, health, or mortgage insurance, or add or subtract special benefits at any time during the life of the policy.
  • With the vast selection of coverage options, insured persons can design complete portfolios of coverage for themselves and their families.
  • This type of product offers great premium flexibility. It is possible to reduce or even cease premium payments, yet maintain coverage with funds accumulated in an investment account.
  • The funds in the investment account are available at any time, subject to any conditions that apply to the selected investment type, and the insured person can increase or decrease the amount invested at any time.
  • It serves as an attractive tax shelter, especially for those who have already made their maximum RRSP contributions.

Warning: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.