Universal Life Insurance

Withdrawals

• You can make a partial withdrawal at any time.
• Withdrawals decrease your policy’s cash value as well as your beneficiary’s payment.
• The minimum withdrawal is $500.
• The maximum depends on your policy. You pay income tax on any withdrawals you make 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 cash value continues to grow as if you hadn’t taken out the money.
• The minimum loan is $500 and may be taxable. You 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 policy

• You’ll receive the balance in your account, which is called the cash surrender value.
• During the first nine years, there’s a penalty for cancelling your policy, called a surrender charge.
• Some policies have no surrender charge.
• You may pay income tax on what you receive, in the year you cancel your policy.

How Much Does It Cost?

Participating life insurance can be more expensive than term and universal life insurance because of the policy’s guarantees.There are several variables that determine the cost of your policy. Here are a few of the main factors:

• Age - Generally, insurance is less expensive when you’re younger.
• Health - Family history, chronic diseases and lifestyle can increase costs.
• Gender - Women live longer than men on average, so insurance may cost less.
• Occupation - If you have a dangerous job, your insurance costs can be higher.