Universal Life Insurance combines the lowest possible cost life insurance to cover estate planning and family income replacement needs with the power of tax-sheltering your investment growth. Universal life insurance, such as Tax Advantage Life, is one of the last significant mainstream tax shelters left to Canadians trying to maximize their savings for their fast-approaching retirement years.

What are the advantages of Tax Advantage Life?
Tax Advantage Life is a universal life insurance policy that features unmatched flexibility and solid guarantees. The flexibility lets you tailor your policy to meet your specific needs. And as your needs change, your policy can be revised to address these needs. The major strength of Tax Advantage Life is that it is a flexible permanent insurance policy that can accumulate value on a tax-deferred basis.* This means that the value within your life insurance policy will grow faster than if you had to pay income tax each year on the interest as it is earned. Plus, you have access to the value within your policy by making a loan or by taking a partial withdrawal subject to surrender penalties during the first 10 years, and Market Value Adjustments on Fixed Interest options. Also, your beneficiaries will receive the death benefit tax free.**

What guarantees are associated with my Tax Advantage Life Policy?
Your policy contains the following guarantees:
  1. Guaranteed cost of insurance: the current schedule of mortality deductions is guaranteed right in the contract.
  2. Guaranteed administration fees: there will be no increase in expense charges or policy fees for the life of the policy.
  3. Guaranteed tax exempt status: The life insurance company makes sure that all policies remain tax exempt. If necessary, the death benefit will increased by as much as 8 per cent each year to maintain your policy's tax exempt status.
What interest options are associated with my Tax Advantage Life Policy?
 With Tax Advantage Life, you have many options to choose from: You can choose any combination of these options for your policy funds and you can switch between options. Index options are based on the total return (including dividends) of the index they track, minus an annual administration charge.

Are there any guarantees associated with any of the interest options?
The interest payable on Guaranteed Interest Options is linked the yield of a comparable Government of Canada Bond, minus a charge. The minimum guaranteed rate ranges from zero to 3% depending on the duration. The bond and index options are designed to closely match the performance of the index or fund that they are based on.

What investment risks are associated with my Tax Advantage Life Policy?
If you choose the Daily Interest Option your rate of return will fluctuate based on current interest rates. And, if you choose one of the Index Options, your rate of return will fluctuate depending on current market conditions.

How much flexibility do I have if I change my mind about my policy?
When you receive your policy, you have a "free look" period of 10 days from the day the policy is delivered to you. You may return it during the free look period for a full refund of the premium you paid. After the free look period, surrender penalties will apply. Premiums are flexible, although continuing to pay your premiums will help you maintain your policy's value. If you discontinue your premium payments, the policy may terminate. To avoid this situation, be sure to check your annual Statement of Policy Value to make sure the value within your policy is sufficient to keep your policy in force.