A universal life policy is kind of like term insurance, whole life, and Segregated Funds all rolled into one product.
It is a very flexible type of insurance plan, that allows you to tax shelter investments, add term insurance to cover temporary debt, and have a permanent life insurance component for final expenses.
Universal Life policies are often used to address some of the more complicated estate issues that are faced by Canadians. Used in the right way a Universal Life policy is indeed a powerful financial tool. However, they aren’t without their pitfalls. UL policies by their very nature have a lot of moving parts. If those parts aren’t combined properly a UL policy will just leave you frustrated and confused. Consulting a broker experienced with UL policies and their uses is a must for anyone considering this product.
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