• industrial_alliance-insurance
  • empirelife-insurance
  • manulife-insurance
  • equitable-insurance
  • canadalife-insurance
  • rbc-insurance
  • transmerica-insurance
  • sunlife-insurance
  • canada-protection-plan-insurance
  • assumption-insurance
  • bmo-insurance
  • desjardins-insurance
  • foresters-insurance
  • ssq-insurance
  • ulmutual-insurance
  • wawanesa-insurance
  • empirelife-insurance
  • la-capital-life-insurance
  • industrial_alliance-insurance
  • canada-protection-plan-insurance

About Universal Life Insurance in Canada

Safeguard Your Family & Save More Money: One easy way to meet many important goals

We sometimes miss great opportunities in life because we don't look in the right place. The same goes for achieving our financial goals.

A quick flip through any newspaper shows there is a wide range of choices when it comes to investing our hard-earned money. But people often overlook one of the most effective financial vehicles on the market - a universal life insurance policy. In many cases it may offer just the combination of features you're looking for: lifelong protection for your family and tax-deferred growth for your savings:

How Universal Life works.
How Universal Life can increase the size of your estate.
Universal Life Tax-Deferred Benefits.
How Universal Life compares to other investments.
View more details about Universal Life.

We can help you achieve your financial goals.

A universal life policy bundles two valuable products into one unique plan:

  • A savings vehicle that lets you mix and match from a range of quality investment options. 
  • Customized life insurance protection.

Sound interesting...how does it work in simple terms?
Picture a machine that works like this...

Step A: Your money goes in...
You insert your money, and:

  • Some goes to pay your premium for your insurance coverage. Even a small amount immediately earns you a tax-free death benefit payable to your beneficiary. 
  • The rest are savings you put to work for you in a tax-deferred way.

Step B: ...your contributions are put to work...
Once inside, your money is directed from one platform to the next, building its value according to your directions. The objective is for the money to grow over time.

You can choose a safe path that protects your principal, such as a Guaranteed Investment Account. You can also choose from a variety of low-cost, diversified, equity-linked (stock) investments that offer strong long-term growth potential. You can even choose a customized blend of investment choices.

Step C: ...you come out ahead
The entire pool of money that comes out at the end represents the amount a beneficiary would receive when the policy is redeemed if you die. To learn more about strategies using universal life that will help you shelter your estate from taxes and increase the value of the estate that you leave behind, click on one of the links below:

Asset Protection Plan strategy - if you have physical assets, such as a cottage or family business, that you want to ensure remain in your family for generations to come, click here.

Individual Investment Shelter strategy - if you have excess non-registered investments that you're not using to fund your retirement dreams, click here.

Charitable Donations - if you would like to give a sizable donation to a charity, minimize your taxes and ensure the charity gets its share, click here.

However, while the policy is in place, you can choose to take money out that's accumulating on the savings side according to your needs and circumstances. You could make withdrawals (may be subject to tax) from the savings side to:

  • Meet a short-term financial emergency. 
  • Pay for a child's education. 
  • Supplement your retirement income. 
  • Pay your insurance premiums using the tax-deferred interest growth on your deposits.

To learn more about how you can create a Personal Retirement Account strategy using universal life insurance, click here.

The money on the savings side is, in most cases, sheltered from tax while it remains in the policy. And, as we mentioned earlier, the death benefit is also tax-free.

Maxed out your RRSP and TFSA, looking for more tax-sheltered growth?
Universal life is a great alternative if you are already putting your maximum into your RRSP because it offers solid savings along with the added benefit of life insurance. Universal life gives you flexibility, excellent growth potential and the security you need and deserve. The savings component is paid out tax-free upon death, but may be taxable if it's withdrawn before.

Let's say you are deciding what to do with $1,000 and have three choices. You could:

  1. Buy a GIC outside a registered plan. 
  2. Buy a life insurance policy such as a universal life and invest in a Guaranteed Investment Account (GIA).

If you let it grow for 30 years at a 5% rate of return, the GIC in your RRSP will grow to about $4,000 and will generate a tax deduction, the non-registered GIC will grow to about $2,000 and the universal life policy will grow to about $3,800.

The non-registered product has slower growth because it is fully taxed along the way.

What's Your Best Option?
The right choice for you will depend on your specific circumstances. Here are some general points to consider:

  • If you have room left in your RRSP and are looking for a high growth rate, a registered product is likely your best option. Remember, money in your RRSP is fully taxable when it's withdrawn.
  • If you've maxed out your RRSP, a universal life policy could give you long-term growth and a higher return than a non-registered investment because the money within the policy grows tax-deferred.

Free quotes on Universal Life.