Canada Life’s universal life plan – one of the best around
Canada Life’s Universal Life plan is available with face amounts as low as $25,000, and issue ages from birth to age 85.
The plan allows you to choose between multiple cost of insurance (COI) options, including an increasing COI which allows the applicant to focus on cash accumulation in the early policy years.
They also have a level COI option which guarantees that your rates are fixed for life, and a quick pay COI option which allows for the COI charges to end after 10, 15 or 20 years. Their universal plan has a full host of guaranteed and market-based investment options.
Best is of all is that Canada Life’s universal life plan qualifies for their “Astra” program. This program gives a 50% reduction in premiums to all rated policyholders. A rated policy is one in which the insured is charged an extra risk premium for certain health or lifestyle issues.
The savings can be dramatic. As an example, take a 45-year-old male non-smoking diabetic who applies for $250,000 of universal life level cost coverage. Let’s assume the insured is rated plus 50% for his diabetes; the minimum premium (i.e., the premium to keep the plan in force) is $259.57 per month. With the Astra program, this same individual’s premiums drop to $176.45 per month. This can have a tremendous impact on the premiums paid over the life of the policy.
Canada Life’s universal life plan, which is one of the best in the industry, does have a surrender charge on all withdraws during the first 10 policy years.