Permanent life insurance offers lifetime coverage - traditionally the Whole Life policy. To address the need for insurance products more responsive to the changing economy, insurance companies began marketing a new generation of insurance products including the Universal Life policy.

Universal Life insurance is characterized by its flexible premiums, flexible face and death benefit amounts. You can determine within limits the amount of premium you want to pay.

How Does it Work?

The Universal Life has 2 parts – the insurance part and the savings part. Any amount of the premium that is over and above the cost of insurance and any fees is designated to your policy’s cash value account. The money in this account is invested in segregated funds and will grow tax sheltered. Upon death your beneficiaries will receive the death benefit portion of the life policy tax free. Tax may apply to the savings portion.

During your lifetime the policy’s cash value is accessible (after a stipulated number of years) for withdraw or collateral. Any growth on this money withdrawn will be taxed.

What do we use the Universal Life policy for:

• Retirement Savings
• Estate Planning
• Business Planning
• Educational Funding

Uni•ver•sal: Without limit or exception, comprehensively broad and versatile, adaptable or adjustable, flexible.

Uni•ver•sal life in•sur•ance:

There has been a lot said about Universal Life Insurance over the last number of years and the more its talked about, the more confusing it may become. Thom and Associates can make it simple: Other than the Registered Retirement Savings Plan, Universal Life is the only other savings vehicle available in Canada to shelter your accumulated growth and provide corporate and estate asset protection.