Universal life insurance

Flexible financial protection for you and your loved ones.

 

Get universal life insurance

​Lock in a 10% premium discount for life on critical illness insurance when you also buy eligible life insurance.

Offer ends December 31, 2026. Terms and conditions apply.

What's universal life insurance?

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.

Types of universal life insurance

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:

SunSpectrum Universal Life II

  • Lifelong protection
  • Cash value and tax-preferred growth in savings
  • Offers 13 investment options
  • Coverage ranges from $25,000 to $25 million
  • Includes a reduced paid-up feature
More on SunSpectrum Universal Life II

SunUniversalLife II

  • Lifelong protection
  • Cash value and tax-preferred growth in savings
  • Offers 21 investment options
  • Coverage ranges from $100,000 to $25 million
More on SunUniversalLife II

Get universal life insurance

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.

Benefits of universal life insurance

Flexible premium payments

You can adjust premium amounts based on your financial situation. For example, during financially tight periods, you might choose to pay less.

Variety of investment options

You can choose how a portion of your premiums are  invested, which could lead to potential growth that aligns with your goals.

Lifelong protection for your beneficiaries

Your loved ones will receive a tax-free payout after you die, which they can use for any purpose.

Why consult with a Sun Life advisor

Personalizing your insurance plan

An advisor can help evaluate your financial situation and goals to determine the right coverage amount, preventing over- or under-insurance.

Understanding your options

An advisor can clarify how universal life policies work – premiums, death benefits, cash value, and adjustments – to help you make informed decisions.

Providing ongoing support

An advisor can review your policy periodically and help you adjust it as your life circumstances and financial goals change.

Frequently Asked Questions

The cost of universal life insurance can vary based on factors like your age, assigned sex at birth, health, and the amount of coverage you choose. Generally, having a policy at a younger age offers cheaper premiums.

View sample rates for life insurance in Canada

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:

  • Cost changes: Premiums and cash value accumulation may differ from projections
  • Life changes: Marriage, children, retirement, or income changes may affect coverage needs
  • Beneficiary updates: Keep beneficiaries current
  • Policy performance: Verify the policy remains on track

Regular reviews help ensure your insurance continues to protect your family and meet your financial goals.

A Sun Life advisor can address all your questions and help you figure out which product best meets your financial needs.

Enter your postal code to find an advisor near you.

More resources

Term vs universal life insurance

Understand the differences between these two types of life insurance.

Whole vs universal life insurance

Understand the differences between these two permanent policies.

Participating life insurance

Get lifelong financial protection with a chance to earn policy dividends.

Reviewed by Jean Turcotte

This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.

The Non-Par Life + CII Bundle promotion described in these terms and conditions is referred to as the "Offer". The following terms and conditions constitute the complete terms and conditions of the Offer.

Offer Sponsor

  • Sun Life Assurance Company of Canada (“Sun Life”) Offer Description
  • Eligible Clients will receive a 10% discount on premiums payable under an eligible Sun Critical Illness Insurance ("Sun CII") policy.

Eligibility Requirements

  • The Offer is available exclusively for applications submitted through Sun eApp; paper applications are not eligible.
  • Clients who apply, on the same date, for
    • a Sun Life Evolve Term life insurance (“Evolve Term”) policy;
    • a SunSpectrum Permanent Life II policy;
    • a SunSpectrum Universal Life II policy; or
    • a SunUniversalLife II policy

together with a Sun CII policy, may be eligible for the 10% Sun CII premium discount, provided all other eligibility requirements are satisfied.

  • All bundle applications must be submitted within the offer campaign period from October 5, 2026 to December 31, 2026 (the “Campaign Period”).
  • Bundle applications must be completed using the product bundling functionality available in Sun eApp.
  • All available issue ages and face amounts for eligible policies qualify for the Offer. 

Bundle Requirements

  • A bundle consists of one eligible non-participating life insurance policy and one eligible Sun CII policy.
  • Where a Client applies for multiple eligible non-participating life insurance policies or Sun CII policies, the Client must designate, through Sun eApp at the time of application, which policies will form the bundle.
  • The owner of all policies in a bundle must be the same; the insured person(s) may differ. 

Discount Application

  • The Sun CII premium discount will be automatically applied upon submission of an eligible application, provided all Offer requirements are satisfied.
  • The Sun CII premium discount will apply to the total premium payable under the Sun CII policy, including the base coverage premium, optional benefit premiums (including ROPC/ROPD and TDB), and any applicable ratings.
  • The Sun CII premium discount will be reflected in the terms of the Sun CII policy. 

Retention of Discount

  • To retain the Sun CII premium discount, both the eligible non-participating life insurance policy and the Sun CII policy must be approved by underwriting, issued, accepted by the Client, and remain in force.
  • If either policy forming part of the bundle lapses for non-payment, is terminated, is cancelled, or otherwise ceases to be in force, the Sun CII premium discount will cease and the applicable non-discounted premium will be applied effective on the next premium billing date.

Conversions

  • If an Evolve Term policy forming part of the bundle is partially or fully converted, the discount applicable to the Sun CII policy will continue.
  • If a T10 Sun CII policy forming part of the bundle is partially converted, the discount will continue only with respect to the portion of the T10 Sun CII policy that remains in force following the conversion.
  • If a Sun CII policy forming part of the bundle is fully converted, the discount will end on the effective date of the policy issued on conversion.

Backdating

  • Backdating is permitted in accordance with Sun Life’s administrative rules and the maximum backdating period applicable to the relevant product.
  • Bundle applications submitted during the Campaign Period but backdated to a date outside the Campaign Period will remain eligible for the Offer.
  • Bundle applications submitted outside the Campaign Period will not be eligible for the Offer solely because they are backdated to a date within the Campaign Period.

Eligible Business

  • The Offer is available for new business applications submitted during the Campaign Period.
  • Clients with existing applications in underwriting who cancel and reapply during the Campaign Period will not be eligible for the Offer.

Ineligible Products

  • The following products are not eligible for the Offer: Achievers Term, Essential Term, 1-year Bridge Term, Simplified Issued Term, Sun Life Go Term, and Express Critical Illness Insurance.

Additional Provisions

  • There are no additional issue date or settlement date requirements applicable to the Offer.
  • If a SunSpectrum Universal Life II policy or SunUniversalLife II policy forms part of the bundle and receives special quote pricing, Sun Life may determine, in its sole discretion, whether any applicable Universal Life commission bonus will apply.

Applicable Law

  • The Offer and these terms and conditions are subject to all applicable Canadian federal, provincial and territorial laws.

Reservation of Rights

  • Sun Life reserves the right to amend, suspend or withdraw this Offer at any time without notice, provided that any such amendment, suspension or withdrawal will not affect discounts already applied to policies that satisfied all eligibility requirements before the effective date of the change.