Universal Life Insurance is insurance that blends certain aspects of both term and whole life. Universal life insurance offers customers the advantages of a traditional term life insurance policy. It can also accrue cash faster than conventional entire life insurance. Whole life insurance is also less flexible than a life insurance policy.
The policy’s cash value could get tied to shorter-term interest rates or a combination of options for investment. It can lead to higher returns over a whole life insurance policy, which increases cash value.
Flexibility
It is essential to note that the range of flexibility offered by universal life insurance policies varies with the type of policy and the insurer. One common rule is that universal policies must include minimum face value (premiums and death benefits).
The premiums you pay and death benefit are variable (within the policy limits). They can get adjusted according to your present situation.
The increase in premiums and death benefits could be subject to medical clearance.
Savings & Investments
Savings and investment funds are separated from your term insurance policy and accumulate in a tax-deferred manner. After the premium gets paid, any remaining funds are transferred to an investing account and deposited monthly or annually.
The investment account can comprise interest-paying savings accounts and mutual fund types or index accounts linked to specific stock market indices.
You are free to pick the best mix to meet your requirements.
Get in touch with Ottawa Life Insurance.
Talk to a broker for more information. Could you mail Ottawa Life Insurance at info@ottawa-lifeinsurance.ca or call (613) 454-1424.
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