Universal life insurance Mississauga | Universal life insurance Brampton

Universal Life Insurance

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Are you looking for a life insurance policy that lets you invest and gradually build your wealth over time? Then you should consider getting universal life insurance. It is one of the most reasonably priced and flexible insurance products out there that covers your life. For universal life insurance in Mississauga, look no further than Harjinder Sandhu.

What is a universal life insurance policy?

There are two vital parts to a universal life insurance plan – investment and insurance. You have the option to choose your investments, including accumulating wealth tax-free, within certain regulations set by the government. Additionally, you also have the freedom to withdraw and borrow money from your plan as and when required.

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How does it work?

First and foremost it is an insurance plan, the policyholder gets to decide the insurance amount needed to protect your assets, loved ones, and your business in the event of your untimely demise. Like most insurance policies, the cost of insurance and premium is calculated based on several risk factors, including the policy owners health and age. In addition to the protection offered, premiums in a universal life insurance policy can generate tax-free income. You also get to choose the investment options in your insurance plan. Every month, the insurance company will deduct charges like the cost of insurance, additional rider charges, and administration fees. The amount that is present after deductions make up the investment of your policy. Based on its performance, it can fluctuate. This insurance plan is most successful when you pay more than what is required to cover the costs of your insurance plan. There is a limit to the amount of premium you can pay annually, it is called Maximum Exempt Premium (MEP). Because universal life insurance is a life insurance policy, when you are no more, the death benefit is paid to the beneficiary you have named in the insurance plan. Another benefit of universal life insurance is you can access the funds that you have earned in your policy as and when you need it, as long as you pay your monthly insurance cost, including any cancellation charges etc.

For expert advice on universal life insurance in Brampton, please do not hesitate to contact Harjinder Sandhu.


Types of universal life insurance:

  • Indexed universal life insurance: Indexed universal life insurance coverage provides insurance coverage for the entirety of your life, and over time builds up cash value. When you sign the insurance plan, the death benefit is set, but it is subject to change. The cash-value growth is linked based on the performance of the stock index. A stock index quantifies how well the market is performing. Depending on how well the selected index performs, the cash-value value will grow quickly and significantly. If the market is performing poorly, you will earn next to nothing, resulting in the policyholder paying higher premiums to keep the insurance policy in effect. If your insurance plan does not have enough cash value to cover the policy expenses and cost of insurance, it can lapse.

  • Guaranteed universal life insurance: If you wish to not have your policy premiums linked to the market performance, then going for a guaranteed universal life insurance plan is the best option. With this policy, your premiums remain the same regardless of how good or bad the market indexes perform. These insurance plans come with a no-lapse guarantee, which essentially means that if you continue to pay your premiums, the policy will not lapse. Additionally, the policy’s death benefit will also not change. The downside to this is that over time, the policyholder will accumulate less cash value.

  • Variable universal life insurance: This universal life insurance plan allows the policyholder to adjust their premiums and change their death benefit to suit their requirements. The policy owners also get the chance to invest in the cash value of several funds offered by the insurer based on their investment goals. The owner of the plan stands a chance to earn handsome returns if the funds perform well. However, when you diversify your funds, there is an element of risk, because the markets’ performance is uncertain.

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    So, if you are looking to purchase universal life insurance in Mississauga?

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    (416) 668-7000


    Why should you consider buying universal life insurance?

    Unlike term life insurance, universal life insurance can accumulate interest-bearing funds similar to a savings account. Also, they can adjust their death benefits and premiums. For universal life insurance in Brampton or Mississauga, give Harjinder Sandhu a call today.