What is Universal Life Insurance?

Universal life insurance is guaranteed, lifelong protection that also lets you invest and grow your wealth. It’s one of the most flexible and affordable products available for lifelong coverage.

 

With two key components—insurance and investment—universal life insurance offers both security and growth:

• Insurance: Provides a tax-free payout to your beneficiaries when you pass away.

• Investment: Choose where your money is invested and grow your wealth tax-free, within government limits.

 

How Does It Work?

• You pay a premium: Part of your premium covers your insurance costs.

• The rest is invested: The remaining amount goes into your chosen investments.

• Access your funds: You can withdraw or borrow from the cash value, with certain tax implications.

Universal life insurance gives you control and flexibility to adapt your policy as your needs change.

 

How Can You Use Your Policy’s Cash Value?

Withdrawals:

• Take out money anytime, subject to policy rules and limits.

• Withdrawals reduce both the cash value and the payout to your beneficiaries.

• Taxes may apply on withdrawals.

Policy Loans:

• Borrow from your cash value with interest.

• Your cash value continues to grow, as if the money is still there.

• You can repay the loan anytime, but interest and possible taxes will apply.

Cancelling Your Policy

• If you cancel, you’ll receive the policy’s cash surrender value (account balance minus fees).

• A surrender charge may apply in the first few years, depending on your policy.

• Taxes may be due on the amount you receive when you cancel.

 

How Much Coverage Do You Need?

To ensure your loved ones are financially secure, consider:

• Your income and net worth

• Family needs

• Outstanding debts

• Any other insurance policies you already have

 

Universal life insurance combines lifelong protection with investment opportunities, helping you build wealth while leaving a legacy for your loved ones.