Universal life insurance is a permanent life insurance plan. Universal life insurance uniquely combines permanent life insurance protection with the benefits of tax-advantaged investing. You may have heard the saying, "buy term insurance and invest the difference," well universal life takes care of both… all in one policy. And while it does have an investment component, you can decide to pay only the insurance and administrative costs each month and not use the investment component at all.
With universal life insurance, you pay an amount of money (usually monthly) 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 return based on the performance of the investment account(s) you've chosen inside your policy.
And you don't have to pay tax on any growth in the investment accounts because it is part of a life insurance policy, provided your policy value does not exceed an amount prescribed under the Income Tax Act.
It's often been said that the only constant in life is change. If that's true, then it's important that your life insurance can change too. Whatever life insurance plan you have, it needs to be flexible and adaptable to the changes that life throws your way.
Universal Life Insurance is the most flexible life insurance available today. You can customize your plan when you buy it, or easily make changes later on. And Universal Life offers you the opportunity for tax-advantaged investing. This gives you the chance to increase your wealth by investing money within your policy. McNamee & Associates Financial Services offers you the ultimate universal life insurance solution. We give you two products to chose from, ensuring your needs are met today, tomorrow and into the future.
B. Kirk McNamee, CFP