universal life insurance

Universal Life Insurance

Another type of permanent life insurance that combines the protection with a tax advantage investment. It helps to maximize the transfer of your wealth to your family in a tax efficient way.

• The three pricing factors are unbundled: Cost of insurance, expenses charged by the insurance company and investments options available to the policy holder.
• Flexibility: You can have a flexible premium schedule, subject to the term of your policy, and certain minimum payment requirement.
• A wide selection of investment options.
• Tax Advantaged Investing – A portion of your premium purchases your insurance, while the rest earns interest that is not taxable while it remains in your policy.
• Access to funds – Throughout your lifetime, you can access the funds in your policy to supplement your income in retirement or during a time of illness.

How it works?

• Premiums deposited to investment account.
• On a monthly basis – Premium tax, Cost of insurance, Cost of riders and benefits, and policy are deducted.
• Investment return credited
• If there are adequate funds in the cash account to cover costs, the plan stays in force.
• Lump sum deposits can be made at any time.
• If investments returns are ahead of projections, premium payments can be skipped.
• If investments returns are below projections may have to add more money.