Universal life insurance is a versatile insurance plan which provides permanent death benefit protection that can be customized and modified. These plans can evolve and be modified to meet the changing lifestyle, budget, and savings objectives of a policy holder. Universal life insurance plans also have unique tax sheltered investment capabilities which allow policy holders to invest additional capital above the typical cost of insurance charges in investments of their choice, which grow on a tax deferred basis.
Policy holders usually make a monthly or annual deposit to the plan. The costs of insurance and administrative charges are deducted monthly. The remaining portion is deposited into a tax deferred investment fund.
A universal life insurance policy allows the policy holder to structure the investment component in a manner that matches their personal risk tolerance level. Investment options include:
- Guaranteed investment accounts
- Accounts that credit interest based on the rates of return of:
- Stock or bond market indices
- Mutual fund investments
- Managed portfolios
Cost of Insurance options include:
- Yearly increasing cost of insurance (rates rise every year)
- Level cost of insurance (rates today will be the same in 25 or 50 years)
Clients can access this accumulated cash value at a future date through:
- A cash withdrawal
- A policy loan
- A collateral loan
I recommend Canadian Term Insurance. I was offered a solution which allowed me to find coverage for both the immediate and long term with a mix of both 10 and 20 year term insurance.
Canadian Term Insurance helped to decide upon the correct amount of coverage to protect our family. Jeff recommended a program which provides 20 years of term coverage for my wife at preferred rates, and 10 years of term insurance for me at a higher death benefit.
Jeff Comiskey assisted my wife and I in identifying a need for insurance, and presented us with a variety of choices. We chose universal life insurance because of the permanent protection it offered and rates that remain the same for our entire lives.