Universal life insurance is a permanent life insurance plan. This brochure explains the features and benefits of universal life insurance to help you decide if it’s the right insurance solution for you.
The purpose of universal life insurance is two-fold. It provides long-term insurance protection to help safeguard the legacy you’re building for those you care about. It also gives you the opportunity to invest and build additional wealth over time, on a tax deferred basis within the same policy. You may have heard the saying: “buy term insurance and invest the difference.” Well universal life takes care of both … all in one policy.
With universal life insurance, you pay an amount of money that is deposited into one or more investment accounts. Each month, the insurance company takes out money to cover the cost of the insurance and administrative costs. The money left in the investment account earns a tax deferred return (either positive or negative) based on the performance of the investment account(s) you’ve chosen. The money within your investment account(s) is called account value.
Protecting your life with universal life insurance
Customizing your policy with extra benefits
At Manulife, we recommend a yearly review of your insurance policy to make sure it continues to meet your changing needs. And, if your needs change, it’s good to know you have several options to change your amount of insurance or type of coverage.
With your universal life policy, you can add “riders” or extra benefits. These extra benefits help customize your policy. Some examples include:
Child Protection Rider: insure your children now and their future insurability
Business Value Protector: protect your future business growth
Term Insurance Rider: provide extra temporary protection on top of your permanent insurance
Your advisor can help explain which benefits are available and help you decide which, if any, extra benefits you need.
Investing in your future with universal life
Put your trust in Manulife
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. For over 130 years, we’ve grown with Canadians, offering a range of permanent insurance solutions to meet their short and long-term needs.
This post was originally written by Manulife (The Manufacturers Life Insurance Company)
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