Universal Life

The most flexible and accountable life insurance contract available today.

A unique financial product comprised of two primary components – permanent, guaranteed life insurance and a fully accountable tax sheltered investment account with a variety of investment options.

Permanent “Term” Life Insurance

Unlike traditional term insurance, this “term” insurance provides coverage for the rest of your life, and  is the absolute lowest cost form of guaranteed permanent life insurance coverage available.

· Flexible deposits and payment periods; You can even take a “premium holiday”

· Level premiums, guaranteed never to change, for permanent guaranteed life insurance;

· Unlike whole life, the death benefit consists of  both the original life insurance face amount, and investment account balance, TAX FREE!

Tax – Deferred Investment Account

Deposits are placed in your tax-deferred investment account.  The minimum annual deposit is sufficient to keep the policy in-force.  The maximum, established by Revenue Canada, is the largest deposit that can be invested each year on a tax deferred basis.  The value of your account will depend on two factors:  the amount (in excess of the minimum) that you choose to invest and the return provided by the investments you select.

Investment Options

  • Investment options include interest bearing GIC type investments and “mutual-type” funds.
  • Funds continue to grow “tax sheltered” as long as the contract is in force.

Use of the funds

  • Use investment growth from within the policy to pay life insurance premiums with pre-tax dollars, providing savings of up to 50%.
  • Shelter investment funds from taxes.
  • Protect assets from creditors.
  • Create substantial wealth that can be passed on, tax free to anyone you choose.

Getting Cash out of the account

  • You have full account access; cash can be withdrawn at any time subject to policy rules.
  • Turn tax deferral into outright tax savings by assigning the account value as loan collateral.


Highlights of a Universal Life Policy:

  • Tax-advantaged Growth: Investment income earned within an exempt universal life policy will grow tax-sheltered. You can withdraw all or a portion of the cash values using a number of convenient withdrawal and loan plans.
  • Tax-free Insurance Benefits: The insurance proceeds of an exempt policy are paid tax-free to your beneficiaries.
  • Diverse Investment Options: A universal life policy has a wide variety of investment options such as: guaranteed interest, equity and bond investments to meet your present and future needs.
  • Creditor Protection: Provided certain members of a family class are named as beneficiary, or that a beneficiary designation is made irrevocable, universal life policies may be protected from claims of creditors of the policyholder.
  • Probate Bypass: The proceeds of your policy can be paid directly to your beneficiary, bypassing your estate and the delays and expenses surrounding probate