What is Universal Life Insurance? It is a type of a permanent life insurance that covers you as long as you live. Typically, you will be paying higher premiums since in the early years of your policy, it should accumulate enough value to offset later, higher insurance risk. Thus this policy has a dual function: it protects your loved once through a life insurance component and it accumulates value, similarly to an investment account. You can actually choose the amount of premiums that are paid into the cash accumulation part of your policy. You can also terminate the policy (also called surrender) if you want and get part of the accumulated funds, or you can sometimes borrow money against your policy cash value.
Interesting fact about Universal Life Insurance:
Universal Life Insurance products usually have higher initial premiums than Term Life.
It is interesting to know that according to our data not many Canadians make choice in favor of Universal Life Insurance (see chart).