Alberta Life, Disability, and Health Insurance Since 1983

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Posted: 9 May '17

How Universal Life Insurance Works

universal life insurance edmonton

Universal life insurance offers more than just a proactive way to protect your loved ones in the case of your death, it also offers exclusive, tax-advantaged investment opportunities which you can control and even withdraw to use before you die.

Universal Life Insurance Edmonton: Locked in rates for Life


First, universal life insurance has the benefit of maintaining a set rate for the duration of the policy. You may choose to lock in payments to age 85 or 100, but your coverage remains beyond that age to keep you covered for however many additional decades you plan on sticking around.This allows peace of mind knowing that your affordable monthly premium is contractually locked in for life. No matter how your circumstances change, your coverage and required monthly payments remain the same. While universal life insurance rates may be marginally higher than other plans at the beginning, they become very cost effective as time goes on and inflation takes effect. These features make universal life insurance a smart long-term investment for the insurance alone, but there is more added benefits in the forms of flexibility and tax-protected investment opportunities. 

Payment Flexibility


With universal life Insurance, you have the option to vary your payments each month without affecting your coverage. You are required to contribute the minimum amount to cover your insurance premium each month, but this amount can be deducted from a separate investment portfolio that you can contribute to as you see fit in order to give you security should your circumstances change unexpectedly. This allows you flexibility to adapt to changing situations and take advantage of the profitable investment opportunities that this investment account provides.

Tax-Advantaged Investment Opportunities 

The investment account of your universal life insurance provides a number of opportunities that make Universal Life Insurance a smart, profitable investment for you and your family. The flexible payment structure enables you to contribute amounts beyond your premium, which are placed in a separate investment account. These contributions are considered part of your universal life insurance payments and are thus tax deductible. This means that the amount that you contribute to the plan is not taxed, and will not be taxed until the money is withdrawn, enabling you to earn interest on the entire lump sum in the meantime. This amount can be invested in a variety of investment funds based on your choice of risk profile, investment horizon, and preferred investment strategies, with options available for any type of investor. Since the account is tax-advantaged, the profit you earn on the investment will not be taxed when you or your loved ones withdraw it (which is another choice the plan leaves to you). These exclusive tax bonuses make universal life insurance policies the most profitable way to invest your money!

Control Your Wealth

With universal life insurance, you can choose how the investment account is used, with the option to withdraw it while you're still alive or have it paid out with the rest of the policy. Whether you set it aside for retirement, tuition for the kids, padding for the life insurance plan, or a vacation, the universal life insurance investment opportunity is an intelligent investment for you and your loved ones. Universal life insurance offers you an opportunity for affordable, lifelong protection while accumulating wealth through personalized, tax-advantaged investment strategies.

For a Universal Life Insurance plan in Edmonton that best suits your needs, Contact Vistaplan. Our experts will work with you to find the best coverage, rates, and investment strategy for you and your family. 


About the Author - David Motkoski

David Motkosk At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983