Universal life insurance is a type of permanent life insurance that provides flexible coverage and investment opportunities. It combines a death benefit with a cash value component, allowing you to grow your policy while helping ensure financial protection for your loved ones.
Sun Life offers two primary types of universal life insurance products to fit different needs and preferences: SunSpectrum Universal Life II and SunUniversalLife II. Here’s a quick overview of what these products have to offer:
Interested in a universal life policy? Connect with an advisor to get a customized quote. An advisor can help you set up an insurance plan tailored to your specific needs and goals.
Enter your postal code to find an advisor near you.
You can adjust premium amounts based on your financial situation. For example, during financially tight periods, you might choose to pay less.
You can choose how a portion of your premiums are invested, which could lead to potential growth that aligns with your goals.
Your loved ones will receive a tax-free payout after you die, which they can use for any purpose.
An advisor can help evaluate your financial situation and goals to determine the right coverage amount, preventing over- or under-insurance.
An advisor can clarify how universal life policies work – premiums, death benefits, cash value, and adjustments – to help you make informed decisions.
An advisor can review your policy periodically and help you adjust it as your life circumstances and financial goals change.
Universal life insurance is ideal for people who want a policy with lifelong protection, tax-preferred growth in savings, and a variety of investment account options. To find out what type of policy is right for you, connect with an advisor.
It's essential to assess your financial situation and long-term goals to determine the appropriate amount of life insurance you need and what type of policy best meets your needs. You may even need more than one type of policy. For example, you may find having multiple policies, such as having both term and universal life insurance, would benefit you. Connect with an advisor to find out which insurance products suit your financial goals.
To qualify for some universal life insurance policies, you may need to be at least 18 years old. Factors such as your health, lifestyle, and family medical history may also be considered during the underwriting process.
The age required to purchase and own life insurance varies by province and territory. In many provinces, you must be 18 years old to be the owner of a life insurance policy in Canada. However, parents can purchase policies for babies and children.
Sun Life considers factors such as a person’s health, age, lifestyle, and family medical history when reviewing life insurance applications. Connect with an advisor for more detailed information.
Universal life insurance offers several advantages, including flexibility in premium payments, potential for cash value growth, and lifelong coverage.
Yes, you may be able to access the cash value of your policy through withdrawals or loans, subject to certain conditions.
When an insured person dies, the death benefit goes to their beneficiaries; the cash value may also be included in the death benefit. Some policies are structured so the beneficiary receives either the death benefit or the cash value plus any accumulated interest, whichever is greater.
Two main things can keep your policy active: premium payments and cash value balance (also known as the policy fund).
Premium payments: You typically need to pay your premiums on time. However, universal life allows you to have flexibility with your payments as long as the policy stays funded.
Cash value balance (policy fund): The policy stays active as long as there's enough money in the cash value account to cover the cost of insurance charges.
With universal life insurance, you have more control. You can skip a payment if you have enough cash value built up, or you can make extra payments to keep the balance healthy. But if both your premium payments stop and your cash value runs out, the policy ends.
The cash value can grow based on the premiums you pay and investment performance.
Whole life insurance offers a guaranteed fixed death benefit and premiums. Some whole life policies can also include a cash value component.
Universal life insurance can offer more flexibility on your death benefit, premiums, and the investment savings elements of your policy.
Connect with an advisor to see which policy or if both policies suit your needs.
Generally, universal life insurance contracts don't allow a conversion to whole life insurance. However, most term life insurance policies can be converted to permanent life insurance policies.
Yes, you’ll have to review your universal life policy regularly to ensure it continues meeting your needs.
Key reasons to review:
Regular reviews help ensure your insurance continues to protect your family and meet your financial goals.
Understand the differences between these two types of life insurance.
Understand the differences between these two permanent policies.
Get lifelong financial protection with a chance to earn policy dividends.
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.
Reviewed by Jean Turcotte
