How does it work?
 

• You pay a premium for your insurance coverage.

• After you’ve covered the insurance costs, the rest of the money goes to the policy’s investment part. 

• The money goes toward investments of your choice.  

• You can access the money in your account to use however you want, as long as there’s enough left to cover the insurance costs. 

• You choose who receives the money from your insurance protection when you die. 
   

Access your money when you need it
 

• Universal life insurance gives you access to money you’ve earned in your policy.

• You can access the money as long as there’s enough remaining to cover your monthly insurance cost, as well as any cancellation charges, policy loans and market value adjustments.

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Withdrawals  
 

• You can make a partial withdrawal at any time.

• Withdrawals decrease your policy’s cash value as well as your beneficiary’s payment. 

• The minimum and maximum withdrawals depend on your policy.

• You pay income tax on any withdrawals you make from your policy. 

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Policy loans
 

• Borrow with interest from your policy’s cash value – as long as there’s enough money to cover the cost of cancelling your insurance – and eventually pay it back. 

• Your cash value continues to grow as if you hadn’t taken out the money. 

• There may be a minimum loan amount and this may be taxable. You can repay your loan at any time. 

• The loan will be subject to a loan interest rate set by the insurance company. 

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Cancelling your policy
 

• You’ll receive the balance in your account, which is called the cash surrender value.

• During the first nine years, there’s a penalty for cancelling your policy, called a surrender charge.

• Some policies have no surrender charge.

• You may pay income tax on what you receive, in the year you cancel your policy.

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How much insurance coverage do you need?

Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.

Here are a few things to consider:

• Your income

• Net worth

• Family needs

• Debt

• Other insurance you have 

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