Universal Life Insurance

What is Universal Life Insurance plan?

The universal life insurance is a type of cash value life insurance. Under the term of the policy, the excess of premium payments. It is useful to make this form of term life coverage very attractive. Universal life insurance is permanent life insurance with an investment saving plan with low premium like term insurance.  Most universal life insurance policies contain multiple premium options. However, some require single lump sum premium fixed premiums

The four parts of universal life insurance

Mortality cost- universal policies in Canada disclose the mortality charges declare the “mortality charges”. This is the part of your premium that covers the pure cost of your death benefit. We suggest you choose a policy where your mortality cost does not increase as you get older, instead, the same throughout your lifetime.

Administration cost– policies for universal life insurance in Canada not only declare your cost of mortality but also declare what your annual administration charges. insurance policies guarantee that your administration charges will not change for the life of your policy.

Saving or investment– once the mortality costs and the administration charges have been deducted from the universal plan. it may also have referred to as the cash surrender value or fund value.

Return on saving and investment- any interest that your cash value earns over the life of your Canadian universal life policy is credited back the cash value portion annually and invested. so essentially, your money is compounding or earning money. To get more info click here