WHAT IS UNIVERSAL LIFE INSURANCE?
Universal life insurance is a life insurance product that includes a savings and investment portion. This insurance product called universal life is, therefore, as you will understand, more than life insurance in the strict sense of the term.
Indeed, this product allows you to benefit from tax advantages allowing you to increase the assets bequeathed to your estate. Well understood and well guided by a life insurance advisor, universal life insurance is enormously useful, practical and in many cases, adapted to your reality.
PERMANENT LIFE INSURANCE
Universal life insurance is a permanent life insurance product because it can insure you until your death. Universal life insurance products can be purchased in two different ways, either with fixed premiums or with premiums that increase with age. This choice allows, depending on your choice, good flexibility to your desired life insurance needs.
SAVINGS AND INVESTMENT PORTION
The universal life insurance contracts include a portion of savings and investment. That is, with each payment you make, there is a portion of that amount that is added to an investment account that can grow. Upon your death, all of the investment amounts included in the universal life insurance product may be paid tax-free to your estate. This allows many advantages.
The insurer will cost the universal insurance to provide the chosen life insurance benefit and allow you to pay a maximum additional amount to contribute to your capitalization fund tax-free. So a very flexible way to contribute to your capitalization fund through your life insurance.
You will have the flexibility to use these funds to pay the life insurance premium if you eventually wish to stop paying your premium.
WHEN TO USE UNIVERSAL LIFE INSURANCE?
Generally speaking, universal life insurance is used for a variety of reasons. It is important to determine the needs and goals to be achieved with life insurance to understand if this universal life insurance product is for you. Here are some examples, among others to cover the following needs:
- Cover funeral expenses
- Leave an inheritance to his estate
- Pay the tax bill upon your death
- Benefit from tax advantages to increase the inheritance to your estate
Other types of life insurance
Several companies offer life insurance products for people aged 50 and over. It is possible to get term life insurance and permanent life insurance.
Life insurance without medical examination offers to apply for life insurance, but without having to do medical tests. This type of product was designed for people with complicated or fragile health.
Family life insurance allows you to insure your entire family at a lower cost in the event of death. Being covered by this type of product puts everyone in the family under safety.
This type of life insurance is therefore of indefinite duration and gives the certainty to your estate of receiving the amount of the insurance.
Children’s life insurance provides enough money to cover funeral expenses or allow you to take unpaid leave to recover from such a situation.
The term life insurance benefit will give your estate the money to pay for funeral expenses, mortgage payments, debts and living expenses.