Universal Life Insurance Quotes and Plans

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Universal life insurance is the all in one solution

Universal life insurance serves several purposes. It is a diverse and flexible product that allows you to not only protect your family’s financial future, but also use it as an investment vehicle. It is a good option for individuals, investors, and business owners.

ThinkInsure has a large partner network of life insurance providers. Our advisors will work with you to create a universal life insurance plan designed specifically for your needs and budget. We'll shop and compare the best rates from our partners to get you the most affordable policy.

What is universal life insurance?

Universal life insurance is the most flexible insurance protection available. This type of insurance gives you the ability to determine, and at times, adjust your death benefit and investment mix. Universal life also provides tax advantages for you as an investor. Build your portfolio while you protect your loved ones.

Universal life offers you two important benefits :

Savings (often tax-deferred)
Life insurance coverage for the long-term (usually lifetime)

How does universal life insurance work?

You determine the blend you want of investment and insurance protection. Your monthly premium will be split into two parts – life insurance and savings/investment.

When you make deposits beyond your prescribed insurance premiums, these funds can be invested and will earn interest. Your investment portion will grow – and tax on your investment will be deferred.

When the value of your policy builds, you can withdraw funds or take out loans against your account. Like other loans, you will incur interest.

You can maintain your level of coverage or you can opt to increase it over time. Or you can choose a combination of level and increasing value of life insurance.

On payout, there are no tax implications for your beneficiaries.

When should you buy universal life insurance?

It is an important building block of your long-term wealth strategy. It is designed to protect you and your loved ones and help you build your portfolio throughout your life. It is a popular choice for people who :

Have no more room for RRSP contributions.
People who want to augment their estate for children and grandchildren.
Entrepreneurs and businesses who want to protect their business’s value.

How to get universal life insurance quotes

Tell us about your needs

What type of coverage are you interested in?

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We’ll compare quotes from the top life insurance providers in Canada.

Get the best rate and protection

Get the best price and a policy that protects your family and yourself.

How much does universal life insurance cost?

The cost varies based on the amount of coverage you want. Your age and other factors are also considered by insurance companies. Depending on your situation you could pay between $100 and $200 or more per month. Speak with our life insurance advisors to get an estimate for the type of plan that makes sense for your unique situation.

Universal life vs. whole life insurance – what is the difference?

Universal and whole life insurance are both permanent, but they are two different types of products. Here is how they differ:

Flexibility : Universal is more flexible. You have more options to customize your investment options.
Cost : Universal is a more complex product and it typically has higher premiums.
Premiums : Whole has consistent premiums for your lifetime. Universal allows you to invest as much as you want if your normal deductions are met.
Investment : Both have investment options, but universal allows you to control how you invest your money.
Death benefits : Since you can invest more with universal plans, your death benefits can change over time as you put more money into your policy. You can negotiate the amount with your insurer. Whole typically has a set death benefit.

What are the benefits of universal life plans?

happy mother and daughter in the kitchen

This insurance offers a unique blend of insurance and tax protection for you now and to your beneficiaries in the future. You have security and opportunity built into one policy. Other advantages include :

When paid out on death, it usually provides tax-free inheritance for your beneficiaries.
Under current federal tax law, investment growth is tax-deferred – an income tax savings for you now.
It is flexible – you decide the blend of life insurance and premium payments.
There are several types of universal life insurance – indexed, guaranteed, and variable.
It provides you with coverage for your entire life.

What are the disadvantages of universal life insurance?

There are pros and cons to all types of life insurance. Here are some of the potential drawbacks of investing in a universal life policy:

It can cost more than other policies.
Some of your premiums are allocated in a cash-value account.
You typically pay administrative fees.
It doesn’t have a guaranteed level premium.
Variable rates mean interest could be lower than anticipated.

What universal life insurance does for you

It is an investment vehicle for you as well as long-term insurance. It does the following :

Provides a death benefit.
Can be used for unexpected needs such as funeral expenses, loss of income or even mortgage payout.
Can assist you in business planning.
Helps with wealth management and growth.
Can be used as tax-deferred savings.

Universal life insurance FAQs

Is universal life insurance worth it?

Determining if universal life insurance is the right product for you depends on your financial situation and goals. Most people choose it because they want something that will last for the duration of their life. Others use it as a vehicle to maximize their retirement savings. If this is not you, then you may want to consider alternative options such as term life insurance.

Do universal life premiums increase with age?

Yes. As with other life insurance policies, your age is a significant determining factor in how much you will pay. It is always recommended to invest in life insurance earlier to get better rates.

What are universal life insurance surrender charges?

Surrender charges, or surrender fees, are applied to your insurance if you choose to cancel it. This fee can be waived if you provide advance notice of your intention to cancel. The amount you will have to pay depends on your policy details and your insurer. Always make sure you are aware of fees of this nature before investing in any product.

What is group universal life insurance?

This is offered to a group of people rather than an individual. The advantage of choosing group insurance is you can get a lower rate. It is most often offered by employers to its employees as part of a benefits package.

How long does universal life insurance last?

This insurance will no longer be in effect if you stop paying and the cash value of the plan depletes. It can last a lifetime if you continue to pay your premiums.

What is guaranteed universal life insurance?

Guaranteed universal life (GUL) insurance is a plan where the benefits and premiums do not change over time. You have the option to choose when you want your policy to end. If you choose a higher age, it will increase how much you pay for the policy.

What is index universal life insurance?

This is a type of permanent universal life insurance. The policy includes a cash value aspect as well as a death benefit. The money you contribute to the cash value portion of your plan can accumulate interest. Your insurer will choose a stock market index to invest your cash.

Can I cash in my universal life insurance?

Yes. You can draw from the cash value part of your policy. You can also take out a loan with your cash value acting as collateral. How much you can draw or borrow will depend on your policy details and how much money you have in the cash value portion of your plan. You can also cash in and cancel it completely. However, fees apply.

Tips for purchasing universal life insurance

Speak to an insurance professional : This life insurance is more complicated than other types. Speaking with a professional will ensure that you understand the terms and conditions.
Ask questions : Don’t assume that you know the definition of terms in your policy. Ask for clarification about terms like disability, death benefit and beneficiary.
Understand the different types of coverage : It’s easy to get confused. Learning the benefits of one type of life insurance over another is important.

If you have invested in universal life insurance, periodically speak with your financial advisor to make sure your policy is on track with your financial goals.

Compare universal life insurance quotes

Universal life insurance can help you protect your future. Use flexible plan options to make sound investments. Compare quotes from the top insurers in Canada. Contact our advisor today to find insurance that meets your unique needs.

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Universal Life Insurance

We have flexible universal life insurance solutions from the top insurers in Canada.