Universal Life Insurance

Universal Life insurance falls into the category of permanent life insurance. However, it also falls into the category of an investment. By purchasing universal life insurance, you are combining both worlds together. Once you purchase universal life insurance, you have a minimum and maximum allowable yearly contribution. If you decide to pay the minimum payment only, then you are paying into what is called a stripped down universal life insurance policy. This means that you are paying the bare minimum in order to keep your life insurance in force. However, if you decide to over contribute into the policy, than all money paid in excess of your minimum payment will go towards the cash account of your policy and will be used for buying equities within your policy.

Universal Life as an investment

Any excess contributions into your universal life policy (also known as UL for short) will go towards purchasing the equities of your choice. You get to choose whether you want to play it safe and invest in bonds, or be a little more aggressive and invest in stocks. Depending on your investor profile, we can choose a combination of different equities in order to give you a balanced, conservative, or aggressive portfolio. The best thing is that the growth within the investment aspect of your insurance policy is allowed to grow in a tax-preferred account.

Is this the product for you?

If you have maxed out your RRSP’s, are a business owner, or simply want to increase the value of your estate, this could be the product for you. Contact Team Levine today for a free, no obligation evaluation.