Universal life insurance is a hybrid policy that combines certain elements of both term and whole life. Universal life coverage offers the consumer the benefits of a more conventional term life policy and can build up a cash value more quickly than traditional whole life. It also offers a less rigid structure than whole life coverage.

Its cash value can be linked to shorter-term interest rates or a combination of other investment options. This offers the potential of a greater rate of return than that of a whole life policy, resulting in faster cash value growth.


It is important to remember that the flexibility of a universal life policy varies depending on the plan type and insurance company. However, one common requirement is that all universal plans must have minimum face values (premiums and death benefit).

With a universal life insurance policy, your premiums as well as your death benefit are flexible (within policy limits) and can be adjusted depending on your current situation.

Increases in premium amount and/or death benefit may require medical approval.

Savings & Investments

The savings and investments are segregated from your term policy and accrue on a tax-deferred basis. Any excess after the premium is paid is applied to an investment account, deposited either monthly or annually.

Your investment account can be made up of interest-bearing savings accounts, mutual fund type accounts, and or index accounts tied to specific stock market indices.

You are free to choose a mix that best suits your needs.

Contact Baker & Baker Benefits

Consult with an insurance broker, and carefully weigh your life insurance options to ensure you choose the policy that is right for you.

Contact us at 1-866-369-4474

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