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The same way your passport allows you to visit different countries, your
Universal Life Insurance certificate allows you to visit different insurance and
investment choices, all within a framework of life insurance.
It works like this. Consulting with your Foresters representative, you
establish the amount of insurance you think you need, and a premium (your
life insurance payment) you think you can afford. Then
you determine where you want to put your total premium.
Under your life insurance contract, you will have one or more investment accounts in
addition to your death benefit. You can create a customized mix of insurance
and investment. Customized to you and the way you see
both your own and the larger financial world developing. And subject to
certain minimums, you have the flexibility to choose the amount that goes to
each. And what's more, you can change your mind later, and change which
amount goes where. This is valuable to you because your circumstances
change, and economic conditions change. For example, as a parent in a
growing family, you may want more insurance coverage; as your family grows
and becomes more independent, your focus may shift to investment as well as
life insurance.
Universal Life can be a way to accumulate wealth on a tax-sheltered basis*.
If you like involvement and control over your finances, if you want life
insurance that you can tailor to your changing needs over time, Universal
Life may be best for you. One very attractive feature is the accumulation of
investment returns that can be paid out to your beneficiary on a
tax-sheltered basis at a later date.
Universal Life features:
- Flexibility: in premium, in how you allocate the premium, in amount of
death benefit, type of death benefit and type of cost of insurance
- Tax-sheltered
- Value of the savings portion and value of the death benefit depend on your choices
Types of Foresters accounts:
- Daily interest account
- Guaranteed interest account: 1 year, 3 year, 5 year and 8 year
- Indexed Accounts: Canadian Bond; Canadian Balanced; Canadian Equity;
American Equity; International Equity
Guaranteed interest accounts have a fixed rate of return for the entire
term of the account. At Foresters, it is never less than 2.5%. Withdrawing
money from Guaranteed interest accounts could be subject to Market Value
Adjustment. The daily interest account works the same way but without a
minimum guaranteed rate of return. Index accounts have variable rates
of return, with the interest based the performance of the related market index.
Talk to a Foresters representative for more details.
* Only through careful consideration of your personal circumstances can
it be determined if there are tax advantages available to you. You should consult your tax advisors on your situation.
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