Universal Life Insurance: Understanding Your Policy Investment Options

Universal Life insurance is an unbundled form of permanent life insurance.

The life insurance component is separated from the investment component within the policy. The investment component with most Universal Life plans can range from a safety investment, such as a daily interest account or a  1, 2, 3, 5 or 10 year guaranteed investment account for low-risk and high-risk equity-based funds.

Many Universal Life policies also offer a minimum guaranteed return within the guaranteed investment accounts. Empire Life and Transamerica both offer minimum interest rate guarantees in excess of 4%. This can be a very attractive feature in today’s low interest-rate environment.

Additionally, funds which are contributed below the maximum limit set by the government grow on a tax-sheltered basis and can be paid out on top of the face amount tax free to the insurer’s beneficiary.

For more details, please contact us at 1-866-899-4849 or visit our Universal Life Quote page.

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