Universal life insurance plans have distinct benefits, which set them apart from term, permanent and other life insurance plans. Universal life insurance includes, not only the traditional insurance protection that is provided by all life insurance plans, but also unique, tax-advantaged investment opportunities.

For example, when you make a premium payment, the money is deposited into the tax-deferred investment fund or funds you choose. Cost of insurance, administration charges and any charges for policy riders and/or additional benefits that you have selected will be deducted from your account. The balance in the fund continues to earn tax-sheltered interest.
With flexible death benefits and a full range of accumulation options, universal life plans can be customized to suit your long-term financial goals and can be easily modified to meet changing needs.

• Tax-advantaged growth to maximize your capital. Interest growth earned within a universal life policy is tax-sheltered to a maximum determined under the Income Tax Act. At Universal policies are test on an annual basis and, if necessary, make required adjustments to ensure that they retain their tax-exempt status. With special account arrangement that work in conjunction with this processing to provide you with optimum tax treatment.

• Creditor protection. Universal life policies may be protected from the claims of creditors of the owner. This protection is available if a certain family relationship exists between the life insured and beneficiary (and in Quebec, between the policyowner and the beneficiary), or if a beneficiary designation is irrevocable.

• Probate bypass and tax-free benefits. The proceeds from universal life policies can be paid directly to the named beneficiary tax free, bypassing the estate and the delays and expenses surrounding probate (probate is not applicable in Quebec).

• Flexible protection. Unlike other forms of life insurance, you'll have the flexibility to fund their insurance needs by changing your death benefit option, increasing or decreasing your premiums, paying at unscheduled dates, stopping and restarting payments, or paying premiums with the accumulated tax-advantaged fund value from their policy.

• Accessible cash values. You can withdraw a portion of the cash values that have built up within your policy at any time. Convenient withdrawal and loan methods are available, subject to current tax laws and policy surrender fees. Contact your financial advisor for more information on creative ways of accessing your funds.