Universal life insurance not only includes the traditional insurance coverage offered under all life insurance plans, but also tax-advantaged investment possibilities.
Before taking out universal life insurance:
• you must have a need for life insurance coverage
• be debt-free, and
• have no more RRSP contribution room.
Generally, universal life insurance is intended for people who:
• want to establish a savings portfolio that accumulates tax-free, or
• want to increase their wealth for their estate
• are looking for flexibility and want to establish their financial security gradually based on their life events, priorities and financial means.