Investment Options in Universal Life Insurance

Overview

• Universal Life Insurance offers flexibility for investing residual funds after covering the cost of insurance.
• Consumers have the choice of guaranteed or variable return investments.

Guaranteed Return Investments

• Guaranteed Investment Certificates (GICs)
  • Fixed return, low risk.
  • Options for 1, 3, 5, or 10-year terms.
• Daily Interest Accounts
  • Provide a guaranteed but conservative return.

Variable Return Investments

• Indexed Funds
  • Invest in a portfolio tied to indices like TSX 300, S&P 500, etc.
  • Returns depend on index performance.
• Mutual Funds
  • Insurance companies collaborate with mutual fund managers.
  • Separate funds are created for policyholders, managed similarly to standard mutual funds.

Flexibility and Customization

• Policyholders can change investments at any time.
• Combination of guaranteed and variable options possible.
• Allows for tailored investment strategy based on preferences and risk tolerance.