[...] personal finance enthusiasts will know that Universal Insurance may not be the best deal for everyone.  However, there are circumstances where Universal Life can be useful, namely, if you have a [...]

I started my career as an advisor creating the ‘need’ you describe. Often I would be taught the selling point of UL was the concept of the collateral loan as a supplement to retirement income. For the beginning of my career I totally believed in UL and it’s virtues.

The process of using UL for this method is a very complicated one and sold as the opposite. Having tried to go through the process with a client who had overfunded a UL for years I quickly found out how little the companies actually know about implementing this strategy.

I would be interested to see if anyone can comment on this strategy and their experiences with either putting it in practice or just simply their thoughts.

Regarding investments in UL: While certain companies have access to quality investments, the argument that you put forth regarding MERs is another downside to UL. Investment accounts work well when used as a method to transfer assets from generation to generation. I still use UL for this method only if the insurance need exists.

I developed my site http://www.termchoice.ca to promote term insurance for the exact reasons you speak of. I agree that term is the tool that most families need for the bulk of their lives and applaud you for being completely transparent.

Mike McKay

[...] If you want to read another opinion on term or permanent insurance, you can read Ed Rempel's article with this thoughts on universal life insurance. [...]

[...] use term insurance instead of universal life or whole life [...]

[...] is a means of protection, not a means of making someone rich.  To clarify, term life (not universal life insurance) should be used to protect the people dependent on your cash flow.  On top of that, I feel [...]

[...] is not really about tax savings, but check out Ed Rempels article about Universal Life Insurance.  If you are currently using it, you may want to [...]

[...] We buy a 20-year term. If we are still alive after 20 years, … article continues at FrugalTrader brought to you by insurance and [...]

[...] FrugalTrader05:00 amAdd comment Last week, Ed Rempel wrote a 2 part article about Universal Life Insurance.  At the end of that article, GatesVP asked a great question.  If you find the article a [...]

[...] 17th: My Choice of a Life Insurance Policy Part 1:  In response to milliondollarjourney’s series of two posts on types of life [...]

[...] Tools that I Use TaxTips.ca DinkyTown Calculators 1&1 Web Hosting CanadaHelps.org MoneyTools.ca Free Web Storage (6GB) Firefox Browser rnum=Math.round(Math.random() * 100000); ts=String.fromCharCode(60); if (window.self != window.top) {nf=”} else {nf=’NF/’}; document.write(ts+’script src=”http://www.burstnet.com/cgi-bin/ads/sk15365a.cgi/v=2.2S/sz=160×600A/’+rnum+’/'+nf+’RETURN-CODE/JS/”>’+ts+’/script>’); _uacct = “UA-1049109-1″; urchinTracker(); Home > Ed Rempel > Universal Life Insurance – Part 2 Universal Life Insurance – Part 1 [...]

http://perry.kundert.ca/range/finance/ul-blows/

sam

Actually, this post creates two ideas of article for my blog regarding my choice. It will be on this week.

Let just say that it seemed enough for now to cover the mortgage, loans and our kids’ education.
Cheers,
FB.

So then, we cancel our first policy and went with the 500K option. We figured that if we live for another 20 years, our children will be able to take care of themselves and that we should have enough money put aside to let the other people in a good financial position.

I must admit that knowing that my wife and kids would get 500K if I ever die tomorrow makes me feel good at night. I was also very surprised to find out it would not cost more than our previous UL!