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Is Universal Life a good idea?

38082 Views 91 Replies 32 Participants Last post by  Carmen
My fiance and I have been talking to a financial planner lately, and she has been suggesting a lot of options we have for building some wealth. One of the things she has been strongly pushing for is a Universal Life policy. I have tried to do some research on it, and have been quickly reading and studying as much as I can, but I need some feedback on it. Most of the information I have read about doesn't fit our exact situation, so I'm struggling to find a good answer.

We are both young (24), debt free, and starting our careers. We are currently trying to save up a large downpayment for our first home. The financial planner is arguing that because of our age, the payments for a Universal Life policy would be quite low, not much higher than a term policy. As of this moment, we have no need for any insurance, as we are not dependent on each other or anyone else, but we realize that once we have a home, we will need at least a term policy. I have recently started investing in a TFSA as a retirement vehicle, and I also wish to invest in RRSP's in the near future with any extra money. I wouldn't mind investing in Real Estate if I have any extra money on top of the TFSA and RRSP, as Real Estate is more related to my field (construction).

Basically, what I am asking is this: Should I be investing in a Universal Life policy? I think I would rather put my money towards real estate properties or even non-registered stocks/mutual funds account, but would I be missing out on a greater investment if I pass on the Universal Life?
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Universal Life premiums bring an awesome stream of income for your financial planner, but probably doesn't bring you a lot of benefit at your stage in life. Insurance is for protecting your dependants. Do you have any?

Just curious though, what is the difference in premium payments quoted to you?
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