Universal life insurance: permanent cover with flexibility
Universal life insurance combines lifelong coverage with a tax-advantaged investment account. Within limits set by the Income Tax Act, you can adjust how much you pay, direct the excess into investment options, and let that value grow tax-sheltered inside the policy.
It is the most flexible permanent product available in Canada, and also the one that most rewards careful design. That is why Bima routes universal life to a licensed advisor rather than an online estimate.
Share a few details, an advisor prices it personally
How universal life insurance works
Each premium you pay covers the cost of insurance and policy charges; anything above that goes into the policy's investment component. You choose from the carrier's investment options, from guaranteed interest accounts to index-linked funds. Over time the account value can supplement the death benefit, pay premiums, or be accessed through withdrawals or policy loans.
Because the cost of insurance rises with age on some designs, funding and investment choices made early shape how the policy performs decades later. A well-built plan stays in force for life; an underfunded one can lapse.
Who universal life tends to suit
Universal life is usually considered by people who have already maxed out registered accounts or who want permanent coverage with room to adapt:
- High earners looking for additional tax-sheltered growth
- Business owners funding a buy-sell agreement or key-person coverage
- Families planning for estate taxes or leaving a legacy
- Anyone who wants lifelong coverage with premiums they can vary
Why Bima uses an advisor for this coverage
Universal life premiums depend on your age, health, the death benefit design, the investment mix and how you plan to fund the policy. There is no honest single number to show online. Bima collects the basics, then a licensed advisor builds an illustration with you and explains the guarantees, the assumptions and the risks before anything is signed.
This coverage is priced case by case, so Bima does not show online estimates for it. Share a few details and a licensed advisor prices it personally and comes back to you within 24 hours.
Universal Life insurance questions, answered
Is universal life the same as whole life?
No. Both are permanent, but whole life has fixed premiums and guaranteed cash values managed by the insurer, while universal life gives you flexible premiums and control over the investment component.
Can I lose money in a universal life policy?
Investment options linked to markets can fall in value, which reduces the account value and, on some designs, means higher premiums later to keep the policy in force. Guaranteed interest options avoid market risk but grow more slowly. Your advisor will walk through both.
Why doesn't Bima show a universal life quote online?
Because the premium depends on design choices, health underwriting and funding strategy, an online range would be misleading. A licensed advisor prices it personally and contacts you within 24 hours.