Universal Life Insurance Vs. Term Life Insurance In Canada – Which One Is Better?

If you’ve heard the saying, “Buy Term, Invest The Difference,” you’re not alone; buying term insurance is typically the preferred method of life insurance for most people.

The problem is that Term Life Insurance is not available when you need it most because its actual name is temporary life insurance.

When it comes to life insurance, most people are CHEAP, and term life insurance is usually cheaper than Universal Life Insurance UNTIL you reach 60+ years old.

If you’re 63+ years old and you have listened to Dave Ramsey or Primerica your entire life, this is when you start to get angry because it’s around this age that your term life insurance becomes extremely expensive; if you had a bad life insurance agent, this might also be the period in which your Universal life insurance becomes very expensive.

People who care to listen at 65 realize the entire concept behind WHOLE LIFE INSURANCE, which is the most expensive life insurance when you’re YOUNG, but the absolute best life insurance once you hit 60’s if you purchased it before you hit 55.

Universal Life Insurance is superior to Term Insurance because once you have it and pay your premiums, you never have to REQUALIFY for insurance again.

What’s the big deal with requalifying for Life Insurance? Well, as we age, we tend to get sicker, and the insurance companies are in the business of making money; if the insurance company believes you’re going to die soon, they’re going to charge you a higher premium, and this is where UNIVERSAL LIFE INSURANCE, is superior to Term Insurance.

Because even if you’re on your deathbed, if you have universal life insurance, the insurance company can NOT reject your coverage as long as you pay your premiums.

On the flip side, if you’re terminally sick and you apply for Term Life Insurance, expect to either be rejected or for the insurance company to charge you a much higher premium for a lot less insurance.

Although the premiums of both Universal Life Insurance and Term will rise as you age, Universal Life Insurance is the far superior option. Don’t listen to any of that crap about using Universal Life Insurance to get rich; that only applies to people who are ALREADY rich.

If you’re already rich, Universal Life Insurance is the best life insurance since sliced bread because max funding a Universal Life insurance policy as a wealthy person gives you a lot of tax advantages, especially for estate planning, which is really what permanent life insurance is all about.