It’s lifelong protection for your business that you can use to build on your success.

It’s one of the most flexible and affordable products available that permanently covers your business.

There are two parts to a universal life insurance policy: an insurance and an investment component. You choose your business’ investment accounts, and the money grows tax-free, within legislative limits.

Universal life insurance gives your business the advantage of access to money you’ve earned in your policy. Your business can withdraw or borrow from your policy, although this may result in taxable income being reported to you.

You’re only able to access the money in your policy’s investment account if there’s enough remaining to cover the monthly insurance cost, as well as any applicable charges, policy loans and market value adjustments.

Withdrawals

Your business will receive the balance left in your investment account, which is called the net cash value.
Withdrawals decrease your policy’s cash value as well as your payment to beneficiaries in some cases.
Minimum withdrawal is $500 and a maximum depends on your policy.
Your business is taxed on withdrawals from your policy.

Policy loans

Borrow with interest from your policy’s cash value, as long as there’s enough money to cover the cost of cancelling your insurance, and eventually pay it back.
Your policy’s cash value continues to grow as if you hadn’t taken out the money.
The minimum loan is $500 and may be taxable.
Your business can repay your loan at any time.
The loan will be subject to a loan interest rate set by Canada Life on each policy anniversary.

Cancelling your business' policy

Your business will receive the balance left in your investment account, which is called the net cash value.
During the first nine years, there’s a penalty in your contract for cancelling your policy, called the surrender charge.
No surrender charges may apply for some policies.
Your business may be taxed during the year you cancel your policy.

Universal life insurance is usually more affordable than participating life insurance.

There are a lot of factors that determine the cost of your policy, including:

Universal and participating life insurance are the 2 forms of permanent protection for your business. Here’s how they compare:


Participating life insurance	Common features	Universal life insurance
Guaranteed money grows inside your business’ policy	Lifetime insurance coverage	Manage your risk profile with your advisor and choose investment accounts
Conservative asset management	Can borrow from accumulated values in the policy	Cost effective
Policyowner dividends	Guaranteed payout	Payment flexibility

For policies issued after April 11, 2004 to present (no bonus)

For policies issued from April 12, 2004 to December 31, 2016 with client bonus

For policies issued prior to April 12, 2004

Withdrawals

Policy loans

Cancelling your business' policy

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